Is Job Creation Right Around The Corner?
That was one surprising jobs report. If I had to bet on the release before it came out this morning, I probably would have taken the "over". The consensus was for a decline of -1250,000 job losses, but the actual figure was only a decline of -11,000 for November. Additionally, the unemployment rate ticked lower to 10.0% from 10.2%.
As that chart below shows, even though the decline in job losses has been a bit lumpy, the overall trend has been good. With a decline of only 11k jobs last month, you have to wonder if actual job creation is right around the corner?
Looking a little closer at the data, it seems most of the jobs that were added last month were temporary workers in the service sector. That tempers my enthusiasm a bit, but never underestimate the fact that better economic reports and headlines increase optimism and consumer and business confidence. So at some point the negative feedback loop we have experienced could more into a self-fulfilling virtuous cycle.
We also got some positive news in the form of Marvell (MRVL) topping earnings estimates and raising guidance, and Bank of America (BAC) raising $19.3 billion to pay off TARP. Even though the capital raise will be dilutive to earnings, its get BAC out from under the govt. and the "pay czar", which should help it compete better.