The Bureau of Labor Statistics released its Employment Situation report on Dec. 4. The report showed an increase of 211,000 jobs with the unemployment rate unchanged at 5%. The market reacted favorably with the S&P 500 up 2.04% led by the financial sector, and the Dow Jones Industrial Average up 2.06% led by Apple (AAPL, Financial), which was up 3.32%. Year-to-date U.S. large capitalization indexes are just above zero, with the S&P 500 up 1.59% and the Dow Jones Industrial Average up 0.11%.
The positive jobs report should ease market volatility leading up to the Fed’s December meeting. The strong increase and level unemployment rate at 5% show continued improvement in the labor market and make a Fed increase nearly imminent at the Dec. 15 to 16 meeting. While much anticipation has surrounded the first increase, many believe future increases may be few and far between as inflation and productivity growth still remain below target levels.
In a recent interview with CNBC, Barney Frank, former Democratic congressman, provided insight on the current market environment and his prediction for future rate increases.
