Lots of stumbling along yesterday, but eight sectors did find a way to finish in the green; however, the weight of Communication Services (XLC) and Technology (XLK) closing in the red was enough to make it a down session.

Anxious - Not Afraid

Although the Fear & Greed Index slipped back into “fear,” I contend this market has been anxious, not afraid.

Earnings season, last week’s Federal Open Market Committee (FOMC), and today’s jobs report have all been potential swords of Damocles. The artificial intelligence (AI) bubble stuff sparked a selloff, but even there, it's hard to see the current tech rally as the same as the dot-com bubble.

After a hopeful start, only “low volatility” held up.

The good news is that there were no disasters.

Coin Flip

Today’s jobs reports have Wall Street playing the ultimate guessing game. The consensus is 35,000, but it's really a coin flip. I think the number will be weak.

The unemployment rate is expected to be 4.4%, but I think 4.5%, perhaps 4.6%, which should trigger sirens at the Federal Reserve.

Buckle Up

There’s additional economic data out this morning.

Today’s Session

The jobs report is a mixed bag, but what leaps out the most is the 4.6% unemployment rate for November. This is the highest level since September 2021.

An average hourly wage increase of +0.01% also gives the Fed room to continue cutting. 

323,000 more folks have piled into the labor force since October, which tells me Americans want jobs.

The biggest positive surprise was 28,000 job gains in construction.

Initially, stocks edged higher but are now taking their cue from higher bond yields.  I'm not sure why this is the case, but it's passing what could have been a strong knee-jerk move higher.

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