The markets have reversed after digesting the jobs report and the Dow, S&P and Nasdaq all hit new highs.  While the 156,000 jobs created was less than projected, and slightly below the average for the year, the jump in hourly wages was the silver lining, up $0.10 to $26, which is a 2.9% annualized gain and the strongest gain since 2009. 

Under President Obama, there has been 75 consecutive months of jobs growth, something that hasn’t happened since 1939.  And while wage growth has been anemic, it seems to be picking up indicating the job market is tightening and adds support to the Fed’s thesis for 3 rate hikes.  

Highlights from the report:

• Healthcare +43,000 in line with 2015
• Food services and drinking places +30,000 but 112,000 fewer jobs created than in 2015

• Transportation and warehousing +15,000 of which 12,000 was in couriers and messengers.  Year over year down 110,000 jobs.
• Financial activities +13,000.  Hiring has been consistent over the past couple of years.  
• Manufacturing +17,000 with a gain of 15,000 in the durable goods component. However, manufacturing peaked in January (2016), and since jobs are down by 63,000.
• Professional and business services, mining, construction, wholesale trade, retail trade, information, and government, changed little in December.

The Dow was within striking distance of 20,000 (with .037 points) helped by gains in Disney (DIS) and Goldman Sachs (GS).  

The Nasdaq is the best performing market today.  Technology is leading the way higher and FANG (Facebook, Amazon, Netflix, and Google/Alphabet) stocks are back in vogue, and up another 1%.  Advancers lead decliners 1507 to 1339 on the NYSE and 1477 to 1301 on the Nasdaq. 

The greenback is gaining back some of its loses from yesterday and the 10-year treasury is up to 2.416%, and the 2 year shot up right after the employment report.   Factory orders for November fell 2.4.  Oil is also up slightly on the day with WTI trading at $53.98.  Baker Hughs shows US oil rigs increased by 4 to 529, up 10 consecutive weeks. 

Today may be the day for 20,000.  Although, there is developing news of a shoting in the Ft. Lauderdale Airport with 1 reported dead and 9 injured.