Stock Market Futures Rise After Jobs Report's Biggest Surge in 2 Years

By Garrett Baldwin, Executive Producer, Money Morning • December 5, 2014

Good morning! Stock market futures for Friday, Dec. 5 forecast a 40-point increase from yesterday's close, which saw the Dow slip 0.07% to end a three-day winning streak. The market turned downward on weaker-than-expected weekly jobless claims and news that the European Central Bank will wait until January to decide on new stimulus action.

Today, investors will react to this morning's jobs report, which revealed the U.S. economy added 321,000 jobs in November - the biggest monthly gain since 2012. More data this morning showed the U.S. unemployment rate slipped to 5.8%, falling in line with consensus expectations. In November, private payrolls added 321,000 non-farm jobs, far outpacing consensus expectations of 225,000.

Here's what else you should know about the stock market today - including Money Morning's "Tip of the Day":

• Coffee in the Black: Shares of Keurig Green Mountain Inc. (Nasdaq: GMCR) slipped more than 1.1% on news the coffee firm plans to purchase the outstanding 85% share of MDS Global Holding (Bevyz) it doesn't already own. The all-cash transaction will cost $220 million. The deal adds the Bevyz's single-portion, hot-or-cold multidrink machine to Keurig's range of products. Earlier this year, Keurig announced a partnership with The Coca-Cola Co. (NYSE: KO) to create a cold-beverage machine to compete with SodaStream Int'l. Ltd. (Nasdaq: SODA). GMCR stock was up slightly at 0.1% Friday morning.
• Retail's Rough Ride: Shares of Gap Stores Inc. (NYSE: GPS) jumped more than 3.3% in post-market hours Thursday on news of stronger same-store sales in November. Sales increased 6% in Gap stores and more than 10% at Old Navy locations. Thursday was otherwise a bad day for retailers after multiple weak earnings reports. Shares of Express Inc. (NYSE: EXPR) slipped nearly 9% on poor earnings and a slashed profit outlook. Guess Inc. (NYSE: GES) also fell more than 9%, and Aeropostale Inc. (NYSE: ARO) stock plummeted more than 22%.
• Now Selling Diapers: In another twist to the company's pursuit of e-commerce dominance, Amazon.com Inc. (Nasdaq: AMZN) announced plans to launch its own line of diapers. The retailer's private brand Amazon Elements Diapers and Baby Wipes went on sale Thursday. This is the second launch this week that pitted the firm against branded rivals - and one of several new ventures in 2014. On Wednesday, AMZN launched its own food delivery service to compete against GrubHub Inc. (NYSE: GRUB).
• Slashing Benefits: In an effort to cuts costs, embattled electronics retailer RadioShack Corp. (NYSE: RSH) announced that it will stop matching employee 401(k) benefits and intends to review healthcare plans. On Thursday, Bloomberg cited an internal memorandum from the firm's CEO. RadioShack has faced difficult decisions recently, including the closure of 1,100 locations and challenges obtaining credit without conceding certain managerial decisions. RSH stock slid another 5% yesterday - shares are now under $0.60 per share.
• Diamonds Aren't Forever: In a surprising effort to stave off financial wreckage, Venezuela has placed diamonds, precious stones, and other metals in its central bank vaults to boost international reserves. This is the latest desperate act by a cash-strapped, oil-rich nation to salvage its failing currency. Get a wider picture of Venezuela's economic woes from this August interview of Money Morning Global Energy Strategist Dr. Kent Moors by CCTV America...
• Oil Prices Today: Oil slumped again this morning on news that Saudi Arabia has cut prices. OPEC's largest member strongly indicated that it has no plans to slash output or surrender market share. This morning, January 2015 futures for U.S. crude, priced at the NYMEX in New York City, slipped below $66.50 per barrel. Meanwhile, Brent crude, priced in London, retreated again to $69.20 per barrel.
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• Earnings Reports: Stay tuned for earnings reports from Bank of Nova Scotia (NYSE: BNS), Big Lot, Inc. (NYSE: BIG), and Genesco Inc. (NYSE: GCO).

Full U.S. Economic Calendar December 5, 2014 (NYSE: all times EST):

• Employment Situation at 8:30 a.m.
• International Trade at 8:30 a.m.
• Cleveland Federal Reserve Bank President Loretta Mester speaks at 8:45 a.m.
• Factory Orders at 10 a.m.
• Federal Reserve Vice Chair Stanley Fischer speaks at 2:45 p.m.
• Consumer Credit at 3 p.m.

More on Oil Investing: The Saudis are very frustrated they are losing control over the oil pricing power they've held for decades. They're fighting back by starting a price war with the United States. But earlier this week, our Chief Investment Strategist Keith Fitz-Gerald pointed out Saudi Arabia just made the biggest strategic "pricing error" in the kingdom's history. In doing so, the nation cleared the way America's shale energy boom and opened up a killer opportunity for energy investors...