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Morning Commentary

ITíS JOBS DAY†

By Charles Payne, CEO & Principal Analyst
12/6/2019 7:56 AM

There are a lot of questions and concerns about today’s jobs report, including how the resolution of the GM strike will impact the numbers after it was reported October lost more than 40,000 jobs. Beyond job creation and wages, I’m always more focused on the labor force participation, which seems to be making a major turn higher. While employment is near what economists consider “full employment,” there is a lot of room for Americans to hit the bricks and get back into the game.

Juggling Jobs

There are a lot of other components of the report that will matter to those beyond Wall Street, including folks working more than two jobs. 

Multiple Job Holders

Men

Women

Total

4,065,000

4,286,000

Percent of Total Employment

4.8%

5.7%

Full Time & Part Time

2,131,000

2,471,000

Part Time & Part Time

801,000

1,370,000

Full Time & Full Time

207,000

169,000

Varying Times

564,000

585,000

The overall number of folks working two jobs is low; and yet, among women, it’s rising rapidly. Not only do we need to curb this trend for the sake of those trapped in such situations, but it’s also necessary for avoiding an atmosphere where voters think a more drastic approach must be taken.

I should point out 4,438,000 people are working part-time for economic reasons, and 21,549,000 are working part-time jobs for non-economic reasons. Millions of people are choosing a work-life balance.

The Message of the Market

I’m still getting that coil spring feeling from day-to-day trading, even on bad days.

Materials were the best performing sector with gold miners leading the way and a strong showing from building material names. I can’t get too excited about gold stocks here, although there is consolidation in the group that is sure to continue. 

Financials bounced, but they are too inconsistent for my blood.

Beaten-down retailers keep edging higher; PVH Corp., formerly known as the Phillips-Van Heusen Corporation (PVH), Ralph Lauren (RL), and Gap Stores (GPS) stood out. I wouldn’t touch the broken names, which would only fetch small premiums in the event of takeover offers from Burberry (BRBY) and Canada Goose (GOOS). These are potential takeovers that would fetch huge premiums.

Stifel Financial (SF) said to buy Alphabet (GOOG) and Facebook (FB) while Citigroup (C) lifted its target on Apple (AAPL) to $300 from $250.

Symbol

Select Sector SPDR Fund

Last

Change

% Change

XLC

Communication Services

52.45

+0.22

+0.42

XLY

Consumer Discretionary

120.77

-0.12

-0.10

XLP

Consumer Staples

62.43

-0.02

-0.03

XLE

Energy

58.60

-0.28

-0.48

XLF

Financials

29.96

+0.14

+0.47

XLV

Health Care

99.75

0.00

0.00

XLI

Industrials

80.14

+0.02

+0.03

XLB

Materials

59.49

+0.30

+0.51

XLRE

Real Estate

38.51

+0.06

+0.16

XLK

Technology

86.80

+0.32

+0.37

XLU

Utilities

63.40

+0.11

+0.17

By the way, after the close, Tesla (TSLA) got a target for $500 from $440. Perhaps Musk is a loon, but he might also be the golden goose.

Portfolio Approach

I’m eager to put on fresh positions. This morning, it’s important to be around after the jobs report is released.

After the Close

Earnings from several intriguing names, include most noticeably, Ulta Beauty (ULTA), which posted solid results, led by strong skincare sales, is sending shares much higher.

Today’s Session

Monster Employment Report

Firms hiring

Part time for economic reasons -116,000

The futures have spiked much higher on the back of the jobs report.


 

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