Yesterday was a tough session. Four sectors finished higher, but they were down more than 1%.  

Still, large-caps held up well, as small-caps took it on the chin across the board. I think it’s about the Fed and interest rates.

Consumer Spending

Consumers are still spending on airlines, and apparently, Jack Daniel’s (BF.B) is back, although it never really went away for most.

The Atlanta Fed Gross Domestic Product (GDP) now stands at 3.3% for the fourth quarter. It’s not at the level that says it’s an emergency to the Federal Reserve, but Powell & Company have signaled greater concern about the labor market than inflation.

Today’s Session

The jobs report came about as expected by the whisper numbers. Still, there are enough issues, including a sharp decline in participation and those unemployed 27 weeks or longer, up 53,000 in a month and to 1.66 million from 1.22 million a year ago.

People have a hard time finding jobs once they are fired or quit.

The December rate cut is still on.

Perhaps the biggest story is that the reaction to earnings continues to be very positive, coupled with bottom fishing. Former darlings such as Ulta Beauty (ULTA)and Lululemon Athletica (LULU) were soaring ahead of the open.