Stocks continue to climb. Stocks are getting a nice bump this morning after a better-than-expected November jobs report, with the S&P 500 Index poised for a third straight day of gains. Investors are in wait-and-see mode as they watch a continuous string of U.S.-China trade headlines. Right now, trade sentiment is positive after a Wednesday report indicating that the United States and China are on track to reach a limited trade agreement by December 15 (when higher tariffs on $160 billion in Chinese imports are scheduled to kick in). Better-than-expected November jobs data could also give the market an additional lift.
Barely a blip. Despite sharp drops on Monday and Tuesday, the S&P 500 is tracking to a loss of only 0.8% for the week through Thursday’s close. Market action earlier this week did little to sway our bullish technical bias, which continues to be supported by market momentum, breadth, and seasonality. On any further S&P 500 pullbacks, we see support at the 3,030 and 2,950 levels.
Another solid month for hiring. The U.S. job market was solid once again last month. Nonfarm payrolls increased 266,000 in November, a 10-month high and well above consensus estimates for a 180,000 gain. September and October payrolls were also revised up by 41,000. Job creation has slowed somewhat this year, but the pace of hiring is still noticeably above the expansion average, a good sign for the health of this aging economic expansion. We’ll dig into the November jobs report more later today on the LPL Research blog.
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