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T3's Take 3: Stocks Blast Into Orbit on Hot NFP Numbers


Today's financial recap and tomorrow's financial outlook.

NFP Beats

This morning's highly-anticipated November nonfarm payrolls report was better-than-expected, setting the stage for a December rate hike.

211,000 jobs were added, edging out the 200,000 consensus. Plus, October and September's numbers were revised up by a total of 35,000 jobs. This was impressive given the strength of the original October numbers.

The unemployment rate was 5.0% as expected, while average hourly earnings were in-line at 2.0%.

The strength of the report means the Federal Reserve is almost certainly raising interest rates at its December 2016 meeting.

However, action in US Treasuries and gold indicate that traders believe the pace of subsequent hikes will be extremely slow.

Gold actually rose over 2% even though theoretically, it should be hurt by higher interest rates.

Meanwhile, the 10-year US Treasury Yield actually fell today, dropping 4 bps to 2.2729% following an initial pop on the NFP numbers.

Market Roundup

After yesterday's ECB-driven selloff yesterday, traders were on edge.

Once the NFP numbers hit at 8:30 a.m. ET, futures fell sharply. However, following a steady grind, the bears got absolutely steamrolled.

The S&P 500 rose a whopping 2.1% to 2091.61, while the NASDAQ shot up 2.1%.

The NASDAQ Biotechnology Index ETF (IBB), which was the biggest loser yesterday, led the charge to close out the week with a 3.0% gain as traders embraced risk.

Financial stocks, which also got creamed yesterday, rammed higher, with the Financial Select SPDR ETF (XLF) rallying 2.7% to $24.78.

The Russell 2000 was relatively weak but still able to finish up 1.1%.

On a day when most everything was green, the Energy Select SPDR ETF (XLE) continued to lose ground and ended down 0.6%.

Oil, Oil, and More Oil

OPEC held its meeting today to, among other things, decide on whether or not to cut output.

Naturally, Saudia Arabia and Iran were opposed.

Crude oil was up sharply in pre market trading but the strength did not last.

OPEC decided that there would be no change into the current output level of 31.5 million barrels per day. They may, however, decide on a production ceiling once Iran has increased output.

Crude oil traded as low as $39.60 today, a new 52 week low.

Monday's Financial Outlook

There are no major US economic reports on Monday.

Australia's NAB Business Confidence will also be released.

Before the open Mattress Firm (MFRM) will report earnings, while GW Pharma (GWPH) and H & R Block (HRB) will report after the close.
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