November’s Jobs Report: Unemployment Rate Dropped

Commenting on November’s government jobs report and today’s trading, Gorilla Trades strategist Ken Berman said:

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Q3 2020 hedge fund letters, conferences and more

The major indices are all trading slightly higher at midday with the Nasdaq, the S&P 500, and the Dow all hitting new all-time highs this morning. While the relative weakness of the tech sector has been weighing on the large-cap benchmarks in early trading, small-caps had an even stronger morning session amid hopes that a stimulus agreement is just around the corner. The number of new COVID cases hit a new all-time high in the U.S. despite the positive trends of the past few days, and with the pressure on the healthcare system still increasing an agreement would be vital.

charles munger moat valuewalk Charlie Munger competitive advantage great companies great brands GARP value investing value investors Google Alphabet profit margins Berkshire HathawayThis is the second part of a short series on Michael J. Mauboussin’s research document reflecting on 30 years of Wall Street analysis published in 2016. Q3 2020 hedge fund letters, conferences and more The document outlined Mauboussin’s observations of successful investors throughout his three decades on the Street. This article starts at point six. Read More

November’s Government Jobs Report

The highly-anticipated government jobs report was as even though non-farm payrolls missed the already modest consensus estimate, with a reading of 245,000, the unemployment rate dropped more than expected to 6.7%, while hourly earnings surged higher by 0.3%. Factory orders beat too, adding to the positive signs for the manufacturing sector. We got positive economic news from Europe in pre-market trading as well, with German factory orders beating the expectations by the most, which helped the global rebound in risk assets.

Market Wrap

Dow: 30,136, + 167 or 0.6%

S&P 500: 3,692 + 25 or 0.7%

Nasdaq: 12,453, + 76 or 0.6%

Russell 2000: 1,879, + 30 or 1.6%

Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by a more than 4-to-1 ratio on the NYSE at midday. Only 2 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 211 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. Cyclical issues registered massive gains this morning, together with small-caps, as the vaccine rally resumed, and as the key defensive sectors and tech stocks lagged behind the broader market, the week could end on a decisively bullish note for growth stocks. Stay tuned!

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