This is Mark Vickery covering for Sheraz Mian, who will be
away on business until the second week of December.
To read this article on Zacks.com click here.
Revised GDP numbers for Q3 came out this morning, as did new
jobless claims -- both reports were impressively good for the
U.S. economy. Gross Domestic Product for the quarter was revised
up to 3.6% from 2.8% to the largest quarterly figure since Q1 of
2012. Jobless claims ticked back under 300K for only the second
time in recent memory, indicating the possibility of a new, lower
range being established.
Of course, this ratchets up talk about Fed tapering starting
sooner than later. It's medicine we're going to have to take
eventually, and will mark a longer-term positive economic
development, but the markets see the "free-lunch" aspect of Fed
bond buybacks as a near-term negative.
Meanwhile, the yield on the 10-year note is climbing, and has
been since yesterday's impressive
) private sector jobs report. The range between the 2-year and
10-year is now the widest it's been since July 2011.
Tomorrow's Bureau of Labor Statistics (BLS) non-farm payroll
report is the main course this week, however. And if the
narrative from these early economic markers this week holds, we
should see another impressive development in U.S. employment
statistics -- significantly above 200K would surely be a signal
that economic growth has begun to gain traction, and also that
"taper talk" will begin to accelerate.
Now, because it is the holiday season, jobs news -- especially in
retail and other services, like package delivery -- always picks
up. Also consider that much of what we've seen with these
positive numbers in employment and economic growth are merely
filling the void from the setbacks of the federal government
shutdown earlier this fall.
But if anything, this is proof that it's hard to keep our giant
economy down for long. Moving into top-ranked stocks ought to be
a good course of action for investors looking to endure the
current "good news is bad news" scenario.