Bluepoint daily market view – February 08, 2012
More good economic news – job postings at a high. The number of available jobs in the United States jumped in December to near a three-year high, supporting other data that show a brighter outlook for hiring. Companies and governments posted 3.38 million jobs in December, the Labor Department said Tuesday. That’s up from the 3.12 million advertised in the previous month and nearly matches the three-year high reached in September.
Job openings in the private sector reached the highest point in almost three and a half years. Manufacturers, retailers and professional and business services all posted gains. Professional and business services include temporary jobs. But they also include high-paying positions, such as architects, engineers and accountants. The report on job openings follows Friday’s optimistic employment figures. Those showed employers added 243,000 net jobs in January, and the unemployment rate fell to 8.3 percent.
This means the “risk on” trade continues and the equity markets grind higher. At the same time the ECB just printed 1/2 trillion dollars of government welfare for banks and the Fed acts like impending doom is around the corner with their freebie rate policy. So what gives? Are the central banks wrong? No not really, the improvements we are seeing are clearly Fed and stimulus induced, with the hope they are priming the pump for the economy to finally start on its own. Since structural issues are not being fixed, their strategy for the most part will not in the end work. But it does kick the can down the road and for the short run, so the “risk on” trade will continue until it doesn’t.