Dow's 490-Point Gain: A Turning Point for Economy?

Suzanne O'Halloran discusses the state of the markets after a day of huge gains.
3:00 | 12/01/11

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Transcript for Dow's 490-Point Gain: A Turning Point for Economy?
The Dow is coming off that 490. Point gains from yesterday one of its biggest in recent history. Joining me now to discuss all that business headlines at this hour is Susanna how -- from Bloomberg TV's -- ended to CEO. -- -- Stephanie that we don't usually do this but let's start with yesterday's news that -- in the -- the biggest in two years wasn't simply a headline driven rally. Or is this side of a turning point in the global economy. Well I wouldn't necessarily call it a turning point what we had -- investors really reacting to -- concentrated effort. -- central banks all around the world including here in the US -- -- lower borrowing costs -- dollars. That just tells us that central banks are on alert they realized a crisis in Europe is a serious problem an air China really get in front. -- things getting any worse and that's really what we saw yesterday's and not necessarily sign. That the economy has turned. A corner but it certainly tells us that. The central banks are on alert and they don't want a repeat of the financial crisis we had a couple of years out. Today we are -- a bit perhaps the market taking a breather after we saw the Dow rallied nearly 500 points we've also got some news today for example targets November sales we're not as -- as the market -- expecting. That's sort of the negative that investors are focusing on but definitely a little bit of a breather early on so far -- Wall Street yet doesn't look like they're gonna go that saint -- that they did yesterday at all maybe because within the last we got weekly figures for new jobless claims as we do every Thursday it never came and at 402000. That's up 6000 from the week before. What's your read on that's. That's a naked and I mean clearly marked folks are -- filing for unemployment benefits that tells us. That unemployment summer means persistently high out we -- get the jobs report tomorrow we are expected to see some job creation. Last month but. The economy -- things aren't -- you -- this week we did get an encouraging. Economic data but it's -- not creating enough to bring down unemployment and also tells us that companies are still. Scaling back workers' cell. With the jobless claims anything above that 400000. It is definitely not dead and it does tell us out of primary means a huge problem and that's also something that the market is focusing on today. Heading into tomorrow's big jobs report is we continue to get data that tells us unemployment. Likely will remain at 9% for the foreseeable future that is not -- -- also out today numbers on motor vehicle sales what are -- looking for there. -- you know -- exposed to be actually pretty get we'll get numbers from General Motors sometime in the 10 o'clock hour they have an 11 o'clock conference call those sales are expected to rise about 7%. -- is expected to do even better those numbers typically come out around -- next. Clearly what they say about demand in the economy will be buried he but the numbers just -- pretty and we're hearing November perhaps -- -- it is strongest because of the Black Friday holiday we have last week. Since -- nine you'll -- that's -- he had cast for clunkers. Again we want to hear it out of makers say don't forget we've -- oil back at the hundred dollar level that it certainly not good -- actually did hear from Ford. I believe yesterday. Some at the company said November sales where. We're tracking a little bit better than expected helped by the smaller suvs. Those of course are more fuel efficient -- -- kind of ahead of the game. In making their -- all of their cars more fuel efficient and -- General Motors which is at that was in bankruptcy as we now while Ford had some lead time there. They don't look at the numbers we'll see -- GM's as a tennis. Ford at 11 o'clock but the numbers over dollars us in pretty -- It appears that consumers are comfortable actually upgrading their cars and again -- with a number say but -- looking for those to be pretty decent. Okay now there's a new twist yet again in AT&T'S and bid for T-Mobile it's not it's up it's -- it's up. -- -- -- It's well look at -- really really obviously want to get this 39 billion dollar deal done we know the Department of Justice. Doesn't want it to happen regulators feel that it will hurt consumers there's still other regulatory agencies that have to you. Gave Mary Mary -- on the deal here about what we're hearing this is a report in the Wall Street Journal is perhaps if they feel they cannot get this deal done. Or pushed through regulators that -- may consider a joint venture and we did talk to Deutsche Telekom. The parent of T-Mobile and they -- -- disputed that story. But but we do now obviously the Steelers very important for competition. The companies need to do it to they're gonna try to get this deal done how -- they can we still. Know that they are going through the proper regulatory channels. The F an interesting twist could they do a joint venture certainly wouldn't be as advantageous as an outright combination of the two. But if regulators on our board and they're not going to be able to do the DL and what we're hearing from Washington. Is that they're very negative on the deal and -- perhaps -- try to block it. Okay very is also talked this morning. And the Yahoo! takeover -- -- yeah what you know we're hearing this is -- circulating for a couple weeks but we are getting more concrete deals we are hearing -- Alley Bob which is a Chinese Internet search and and eighty preparing a bid for Yahoo! and -- apple actually. Owns a stake in Alley about -- -- it would be certain that reverse DL Jack -- who -- -- about the has been. Very open about wanting to you actually buy Yahoo! or combined we'll -- a deal could value the stock per share around when he. 25 dollars right now we're at about sixteen and change the stock actually. I seen a pop today on that news but -- -- -- now as well -- also talking with some private equity firms such as -- capital that's where. Presidential candidate Mitt Romney -- his money so. It appears Yahoo! is moving closer to -- -- some type of take out -- take over with. A partner Alley -- would make sense because it is in -- that's a huge area of growth. Clearly for the Internet at fast in the US so. Potentially -- we don't have any concrete. Firm. The hearing from the company no comment from the company but we do know that Eric's point some type of a -- going forward and I would be interesting twist. Lately especially because Yahoo! has an interesting history with China all right let's move on to the other certainly been talking about for a couple weeks and that's Zynga. The social network game company that everyone seems to know appears to be gearing up for an IPO. Where you hearing about Matt. Yet it's interesting because we talked about -- a couple of days ago perhaps stealing our IPO next here but what we're hearing -- Zynga which. Opera's of those games on the east but that folks play at not -- -- player of those game -- -- parents and I cannot I -- hanging -- and behind the times here but yeah I don't I'm not -- gamer online -- a lot of people are it's there the largest provider games on FaceBook. We are hearing our Bloomberg News and learn that they perhaps -- tragedy there IKEA before the end of the year. -- knee injuries about 900 million dollars I would buy the company at about ten million -- what's really interesting about seeing it is a fact that they need try to push this deal for you. Before the end of the year that kind of want to strike when the -- -- we've had. A number of social networking IPOs this year group and except dress -- -- perhaps a lot of capitalize the the bankers -- you -- so a lot of interest who knows what next year me brain -- the European crisis which. Appears to be settling down but clearly. Far from over right. So the interesting thing about seeing the -- we've seen with group finely and -- they won't be offering as many shares perhaps 10% or fewer and let that typically tells us is the -- tends to get and nice big rise on the it goes public. But as -- -- group -- and for example the Sox have following. In the days after the IPO up pretty sharply at 3040%. Percent so it kind of gives investors. -- it gives the appearance rather that the stock is because it will have a big -- -- on the day at the -- that things are are looking really get but once things settle down investors start to focus on fundamentals they paid out. It's not really shouldn't be up that much efforts in treating it sort of an unnatural boost its stock so keep that in mind we're hearing -- deal could come perhaps around December 15. Comment not company's -- sees me the company isn't commenting but certainly are reporting suggests that deal could happen before the end. Things -- really interesting in that sector all right Suzanne are really analyst at -- a look at the markets right now and how they're doing the Dow down slightly about thirty points at this. Points doesn't look like. We're gonna see that drunkenness. At least on the market yet -- euphoria out. Let you know -- is an interesting day because it which is not -- we have employment report tomorrow so investors me. Want to take a breather after that huge rally we had yesterday answered a wait and see. Prepare for the jobs report tomorrow at 830 that's one thing secondly at 10 AM beginning -- and manufacturing data for November that is very important that is actually expected. To still a nice improvement if we don't see that. That certainly -- the press in the market even further a lot of folks do you expect that number to be -- better than expected and -- auto sales as well those are expected to be. Pretty -- -- again -- we see that not be the case investors just have -- wait and see attitude today. And may be taking some money out the table -- for the big rally that we certainly have a busy day today. And -- going to be even busier with that jobs report perhaps hopefully. Jobs will have been. We'll have been created in the prior month and -- -- no sign -- -- could come down from 9%. But if we can get job growth last you be over -- -- -- -- call last month up and get tab that growth as much as Wall Street wanted perhaps -- he's seen -- cautiousness. Okay Susanna Haller grant from Bloomberg TV -- of content knowledge for a saint Suzanne have a great day you tip.

This transcript has been automatically generated and may not be 100% accurate.

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