Your Weekly Market Blip 12/4/15

Your Weekly Market Blip 12/4/15

The November US labor report came in today and according to most analysts it was strong enough to virtually insure that the Federal Reserve will raise interest rates at the December 15th office Christmas party. The Dow closed the day up 2.1% or 369 points to close at 17,847. Trading volume was higher. For the week the Dow managed a quarter point gain after getting whacked the past two days. The leading sectors today were transportation, banks and tech. Energy stocks continue to suffer as oil prices are weak.
November’s labor numbers were good. The unemployment rate stayed steady at 5% and 211,000 new jobs were created besting estimates calling for 190,000 in new jobs. Revisions to September and October reports added another 35,000 jobs and the labor force participation rate also inched up to 62.5%.
While it looks like US interest rates will rise in the not too distant future, oil prices could continue to fall. OPEC, at a meeting yesterday, said it will continue to pump oil at current rates and will consider a production curb only if all OPEC and even non OPEC members like Russia reign in production. Iran said it will consider such action only after it reaches full production. Since these guys are focused on cash flow and not the price of oil the bottom line is that for now and perhaps many months to come, oil prices will remain under pressure and hurt US producers who are the only group trying to cut production. I guess economic models of supply and demand go out the window when oil funded governments either run out of money or go to war. Energy stocks in the US fell on the OPEC related news and while some reversed off intraday lows the outlook is iffy. It might be a slow Christmas in Houston this year. WTI crude today traded below $40 per barrel but closed the week off 2.3% at $40.10 per barrel.