Press Esc to close

Welcome to Money Morning - Only the News You Can Profit From.

Close

This Market Is "Going Vertical" – And so Are These Stocks

In our Aug. 6 Private Briefing report, "It’s the Biggest and the Fastest Growing – Here’s How to Profit," we updated our bullishness on China‘s e-commerce market and gave you two ways to ride along.

We had a lot of confidence in both recommendations. But I have to be honest with you: Even I didn’t expect the stocks would soar like they have in the two seeks since.

  • Featured Story

    What the December U.S. Jobs Report Tells Us About 2013

    The December U.S. jobs report released Friday showed the country's unemployment rate failed to improve in the last month of 2012, with the economy adding only 155,000 jobs.

    The unemployment rate, originally reported as 7.7% for November, was revised upward for that month to 7.8%, and stayed the same for December.

    The figure was roughly in line with expectations. Estimates for the number of jobs created in December ranged between 140,000 and 160,000.

    Non-farm payroll hiring in December was most robust in health care, which created 45,000 jobs. Manufacturing, construction and hospitality also logged strong gains.

    Oddly, employment dipped in retail during the holiday-sales month, which is usually the most active time for the sector.

    The government also shed jobs, dropping 13,000.

    After eliminating some 653,000 jobs from 2008 to 2011, state and local governments kept headcount mostly even in 2012. The decline in December could be attributed to the economic uncertainty hanging over Capitol Hill.

    The Pentagon has warned that workers may have to be furloughed if the debate over raising the U.S. debt ceiling, set to be taken up in a few weeks, is dragged out past next month.

    Also weighing on government hiring is the pack of problems that will challenge growth, like rising worker pension costs, steep spending cuts and reduced federal funding that will likely kick in during 2013.

    As Moody's chief economists told USA Today, "The fiscal headwinds will be blowing hard in 2013."

    To continue reading, please click here...
    Read More...
  • port strike

  • U.S. Jobs Report: What to Expect from December The ADP employment report out today (Thursday) offered a glimpse of what to expect Friday in the December U.S. jobs report from the Labor Department.

    The private sector created 215,000 new jobs in December, much more than the 133,000 jobs economists had expected, and a sharp increase from the previous month, according to the report.

    The biggest gains were in the category of trade/transportation/utilities, which grew by 53,000.

    Gains in construction hiring were also robust, with 39,000 positions added in December, the U.S. jobs report said.

    The healthy showing in this struggling sector was attributed mostly to relief work after Hurricane Sandy. But the slow, yet steady recovery in the housing market also deserves some of the credit.

    Medium-sized businesses led job creation, adding 102,000 new jobs. Large businesses followed with 87,000 new jobs.

    Bucking the trend was manufacturing; the sector shed 11,000 positions while service providers increased headcount by 187,000, according to data from Moody's Analytics.

    The strong showing was a surprise, given months of cautionary words from a bevy of analysts and the Congressional Budget Office.

    The analysts and the CBO had warned the fiscal cliff saga would lead to massive job losses and cutbacks in business expansion, hiring and investment.

    "The most surprising thing is that despite all the brinkmanship over the fiscal cliff drama and the debate about that, businesses didn't change their hiring plans. They seemed to slow up their investment spending but not on their hiring, so that's very, very encouraging," Mark Zandi, Moody's Analytics chief economist, told CNBC.

    To continue reading, please click here... Read More...
  • How a Port Strike Would Slam the U.S. Economy in 2013 Jobs strike In the final hours to reach a deal, progress was made today (Friday) in averting a port strike that could cripple most major ports along the U.S. East Coast and Gulf Coast.

    A federal mediator Friday announced a temporary solution: The strike, scheduled to take effect Dec. 30, will be delayed until Jan. 28 unless dock workers and management agree on payment issues.

    "While some significant issues remain in contention, I am cautiously optimistic that they can be resolved in the upcoming 30-day extension period," George Cohen, director of the Federal Mediation and Conciliation Service, said in a statement.

    But, if negotiators representing longshoremen on one side and shipping companies and port terminal operators on the other can't come to an agreement by Jan. 28, 2013, a port strike could cripple the U.S. economy, which may already be hobbled by falling off of the fiscal cliff.

    In today's just-in-time, minimal inventory world, a dock strike would mean that stores would quickly run out of certain non-perishable imported products including clothing, shoes and electronics.

    For example, Wal-Mart Stores Inc. (NYSE: WMT), which relies heavily on goods imported from China, could fail to receive merchandise on time, particularly on the East Coast. And auto manufacturers, especially those such as BMW that assemble cars in the U.S. from imported kits, could quickly find themselves running out of parts.

    Given the uncertainty surrounding the fiscal cliff and how it has weighed on economic activity, "The last thing the nation needs right now is a strike that would shut down the East Coast and Gulf Coast ports," Jonathan Gold, vice president for supply chain policy at the National Retail Federation, told The New York Times. "This will have a huge ripple effect throughout the economy."

    To continue reading, please click here... Read More...