Unemployment Hits 9.8%, America’s Love Affair With Stocks May be Over…

Stock-Markets / Financial Markets 2010
Dec 04, 2010 - 05:38 AM

By: Anthony_Cherniawski

The unemployment rate edged up to 9.8 percent in November, and nonfarm payroll employment was little changed (+39,000), the U.S. Bureau of Labor Statistics reported today. Temporary help services and health care continued to add jobs over the month, while employment fell in retail trade. Employment in most major industries changed little in November.

U-6 Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force remained at 17% in November.

Payrolls Huge Miss: +39K Compared To Consensus Of 150K

(ZeroHedge) Here are a few observations about the payroll figures. Virtually every expectation was missed in this payroll report. Hourly wages remained flat. Manufacturing plunged 13,000 vs. expectations of a 5,000 gain. There are a total of 15.1 million Americans who are unemployed, of which 6.3 million remain unemployed 6 months or longer.

Economy Needs To Create 235K Jobs A Month To Return To Pre-Depression Levels

(ZeroHedge) …this is the number of jobs per month that need to be created between December 2010 and November 2016, or the end of Obama's now improbable second term, for jobs to recover their losses when taking into account the natural growth of the labor force of 90,000 people per month.

America’s love affair with stocks may be over…



-- The divorce is not final, but recriminations have already begun. The Investment Company Institute reported the 30th sequential outflow from domestic equity mutual funds. That brings the total YTD mutual fund redemptions in excess of $91billion. Normally that amount of outflow would bring the market to new lows, but the propaganda, manipulation and intervention by the Fed that is propping the house of cards has left a hollowed-out edifice instead of true value. A crisis is about to begin.

The Long Bond appears to be building a base.



--Treasuries made a quick, sharp reversal higher Friday, sending yields on the 10-year note back below 3%, after a much lower-than-expected rise in nonfarm payrolls cooled expectations that the U.S. recovery was picking up steam. The expectation that the economy was recovering weighed heavily on bond prices until this morning’s employment report. The long bond may be viewed as a haven for investors in an economic downturn.

Majority of traders still positive about gold.



--Gold futures topped $1,400 an ounce Friday after a disappointing jobs report pushed investors back to the perceived safety of the metal and a weaker dollar provided extra appeal. Unfortunately, the flight to safety and the inflation trade are diametrically opposed to one another. This may cause some grief among gold investors.

Japan’s Stocks look to the U.S. for strength.



-- Japanese stocks rose, sending the Nikkei 225 Stock Average to a fifth straight weekly gain, as U.S. housing and retail data bolstered confidence in a global economic recovery.

The Nikkei 225 rose 0.1 percent to 10,178.32 at 3 p.m. in Tokyo, the highest close since June 21. The broader Topix index advanced 0.2 percent to 879.22, as about five stocks gained for every three that fell. This week, the gauges climbed 1.4 percent.

[b]China to adopt “prudentâ€