Markets were headed higher on Wednesday after the number of unemployed Americans reached a five-year low. The Labor Department reported that the unemployment rate fell to 7.0%. They also said there was an addition of 203,000 jobs in November. A level this low in unemployment has not be seen since November 2008. The data surpassed economists expectations of November jobs increasing only 180,000 and the unemployment rate to fall to 7.2%. September and October jobs were upwardly revised 8,000 new positions. During the month of October there were government employees who were counted as unemployed due to the partial government shutdown. With the increasing amount of positive economic data continuing to roll out, some speculate that the government may start finally pulling back on the Fed?s bond buying program. Eric Stein, co-director of the Global Income Group of Eaton Vance Investment Managers, said, ?The U.S. labor market is still far from healed, but it certainly is moving in the right direction. The number puts December on the table, but it isn?t a certainty,? when referring to the Fed?s possible bond tapering.

In a separate report released on Friday by the Commerce Department, it showed that consumer spending was up in October. Spending increased from a 0.2% rise in September to a 0.3% increase in October. This followed a slight 0.1% gain in wages and salaries. Personal savings was down to 4.8% from September?s 5.2%. The increase in spending was attributed partially to purchases of long-lasting items such as vehicles and non-durable goods, like clothing and utilities. Consumer spending accounts for nearly 70% of economic activity. Russell Price, a senior economists at Ameriprise Financial Inc. said, ?People are feeling better, that?s a positive for the holiday season. This year I don?t see the same strong fiscal headwinds ahead of us to impede our momentum.?

Shares of J were up on Friday morning after the company announced that they would be spinning off their Lands? End clothing portion of the business into a separate company. They will do so through a distribution of the stock to the company?s shareholders. This announcement was first made public in October when Sears said they were thinking about separating both Lands? End and the Sears Auto Center into separate companies. The auto portion was not mentioned in the announcement. Brian Sozzi, an analyst with Belus Capital Advisors, said, ?It makes you question the value of what Sears is sitting on. It may have to continue dismembering itself to stay alive today and shrink from the inside out.? He continued to say that the move shows that the Sears was not able to attract a buyer willing to pay the right price for Lands? End.

That?s all for the day.

All the best,
Jack Aubrey, Oakshire Financial