Stocks ended the week on a strong note as the Dow hit new highs. While trading volume was low, the Dow gained 117 points to close at 24,329. For the week the Dow netted about 69 points or 0.29%. The NASDAQ firmed up this week but has now posted two down weeks in a row. BTS is still in cash and IBD has stocks in rally mode.
The labor market continues to look good as payrolls increased 228,000 in November, beating guru expectations. The unemployment rate stayed at 4.1%. The labor force participation rate continues to move up and has now increased by 1.6 million over the past year. Wages were up 2.5% from a year ago which was less than expected and while this number is a bit tepid, studies show that wages in the lower income ranges are growing faster than in the higher ones. Overall the report is the best in two years and points to a solid US job market.
Boeing CEO Dennis “The Menace” Muilenburg had a sit down talk with a drooling Jim “fog horn” Cramer on CNBC. In the interview he expressed optimism for the proposed tax reforms saying it will allow Boeing to hire more workers and invest more dollars in R&D and innovation. It was an interesting interview and revealed trends in aviation and space travel that Boeing is going after. Because of its 7 year order backlog Boeing is able to invest in long term projects more so than other large manufacturers. You can see the 18 minute interview here on our Facebook page.