November jobs reportis out. The numbers were strong, and market are surging.
The Dow is up 130 points and the S&P 500 is up 14 points. These moves reflect 0.8% gains.
Nonfarm payrolls grew by 203,000, which was better than the 185,000 expected by economists.
The unemployment rate plunged to 7.0% from 7.3% last month. This was the lowest reading since November 2008. This was much lower than the 7.2% level expected by economists.
The decline in the unemployment rate comes as the labour force participation rate climbed to 63.0%.
Ahead of the release, markets were already pointing up. Dow futures were up 58 points. S&P futures were up 6.9 points. Nasdaq futures were up 11.5 points. The 10-year Treasury was yielding 2.86%. Gold was at $US1,228, down $US3.90/oz.
For the most part, strategists expected a surprisingly strong number to be bearish for the markets as it would increase the odds that the Fed tapers its quantitative easing program sooner than later. However, that thesis doesn’t seem to be playing out.
Here’s a look at Dow futures via FinViz: