The Dow is having a ridiculously good day, as it’s up about 242 points.
Part of that is what’s going on in Europe. In just over 24 hours, there’s been a total 180 on what people think about Mario Draghi. Simone Foxman explained what that’s all about here.
But a lot of the rally has come since the jobs report. And though it was kind of meh, it might have been just the right kind of meh.
This is a point that David Zervos made on Bloomberg TV earlier.
See, the headline 165K net new jobs is enough to show that the economy isn’t totally collapsing. The worst fears of investors probably aren’t coming to pass.
BUT, the unemployment rate ticked up to 8.3%, and that gives the Fed breathing room if it chooses to step on the gas pedal more.
So, the Fed can still act, even if the economy isn’t crumbling. That’s the sweet spot for risk assets, like stocks.