December 6, 2007

North American stock markets rose for the second day on the White House plan to help troubled homeowners. Investors bet that his would raise consumer confidence and stave off a slump in consumer spending. That sentiment lifted stocks Thursday, along with the anticipation about Friday’s big monthly jobs report.

Investors also eyed November sales reports from many of the nation’s chain stores. Many discount retailers reported strong results, but specialty clothing chains struggled, making for a mixed start to the holiday sales period.

Here’s what you need to know…


Employers are expected to have added 70,000 jobs to their payrolls last month after adding 166,000 jobs in October. However, a measure of private sector employment released on Wednesday showed stronger-than-expected growth, suggesting that tomorrow’s report could come in well above estimates.

A very strong report would likely be welcomed by Wall Street, even if it limits the chances of the Federal Reserve cutting rates by as much as a half-percentage point, in favor of a quarter-percentage point.

Some people want to see a weaker payrolls number, because it makes the Fed more likely to act, but this time investors may want to see a very strong number. Investors want to see that there isn’t going to be a recession, or if there is a recession, it’s not going to be so bad.

Let’s review the charts…

NASDAQ rallied for second day. It retook the 50 day mva and hopes to hold it to confirm support.

The S&P also rallied, like its counterpart and crosses it shorter tread line and the 50 day moving average.