Transcript for Markets Open Higher on Jobless Data
Jobs report showing the unemployment rate taking a surprise a drop. Joining me now discuss that report all the business headlines Alix Steel from the street payout to CEO it is -- happy -- so yeah happy Friday indeed the -- raids. Eight point 6%. For November when we were expecting the same rate that we've -- for months on end at 9% what is your read on his new number. It it's not that great basically and the reason why is because. More people actually stop looking for jobs and that's why we saw the unemployment rate lower. Over 300000. People say you know what I'm out that's not a good sign because it means he didn't feel necessarily confident about the jobs market not to stay in it. -- an article this morning -- -- -- those people had stayed in the work first we're looking an unemployment rate at eight point 9% still better than 9% but not great. So a cross -- posing as. How many jobs were added and when we look at those numbers there are certainly positive signs absolutely you know my take away from that overall economy at 120000. Jobs. The private sector at -- 140000. Jobs October and September's readings were revised up a combined 72000. Jobs that is always huge news. Let me get up -- revision. Also going toward a positive is that 50000 jobs were higher in the retail sector alone that's a third of the private sector jobs that -- added and that's because of holiday hiring that's going to can't come next -- they're mostly part time workers but it could even worse it's a 100%. -- private workforce that we sign it wasn't just a third and that's also relatively encouraging. Corn is the single report isn't enough to signal -- real change in the job market no I think it's just another step it says the US economy is slowly starting to recover I read some of commented -- -- know what it's getting better -- deal would it. But I think you also have to remember that there are some negatives right we still had about six million people unemployed from that high about 2008. But we also seat at the rate is rising which basically means more people feel better they can get jobs elsewhere and so they want to quitting so it still stinging Angus Tug of war but -- -- -- -- a slower at. And we and we should say they're still -- millions of Americans unemployed on thirteen nine and -- that this is certainly going in the right direction and -- do you think this is going to have an effect on stocks today at all absolutely the question is how and I think that because typically -- -- nonfarm payroll day today indices wind up closing lower even if the numbers good. How ever we do you -- the S&P 500 -- average gained the stocks there this week over 8%. Typically I would say you know it probably see some profit taking on that news however heading in to -- ended the year you're gonna get portfolio managers fund managers traders dying to -- some positive gains positive returns. Which means they won't be caught short they won't be betting against the market and they don't not want to -- rally so they won't be selling into the rallies they'll be buying into the rallies and that might help provide some support today. Aren't the topic of jobs let's discuss the proposed extension of the payroll tax cut they're talking about and congress. There -- some surprising division among Republicans on this yet -- basically here we go in the senate defeated both the Republican and democratic extension payroll tax. And here -- -- it comes into play. Right now the Democrats want the Social Security tax cut which is just over 6% to be reduced to just over 3% and to extend -- -- to employers by about half. By slapping a big surcharge on millionaires. The Republicans want to extend a payroll tax we currently have which is around that 6%. By this freezing federal workers pay through 2015. And some other tweaks in the government but by not. Adding to act. So that is where this problem that really a -- -- the democratic plan percent on making about 50000 misses from reported by eight. Says we're looking at fifteen -- -- tax cut. Republican plan is about a thousand dollar tax cut. For a family that both of people work and they make about -- thousand dollars a year. The democratic plan would add about 6000 dollars in tax cuts Republican plant 4000 dollars in tax -- big difference but they're not totally thought our part. -- in the day they do want the same thing. The reason why this is so important for the economy. Is because if you take away the payroll tax cut and it -- you take away the extension of unemployment benefits. What is supposed to expire at the end of this year you're looking at shaving off 1% to one half full percentage points from growth next year and -- and we -- back. And that could hurt Americans and their pocketbooks as well. -- right let's switch gears up for a moment to the European debt crisis because German chancellor on -- -- herbalist calling. For swift action now what exactly does she want to see happen yes -- -- -- ticket she wants -- most everybody wants right down here is which is some -- -- fiscal unity fiscal consolidation. For the entire seventeen countries that use the year -- so basically means -- now legal ramifications. If you don't need -- -- -- A deficit reduction targets if you don't implement those austerity measures says the -- got -- -- -- -- had to answer to now. She wants that the French president Nicholas Sarkozy wants back but he wants a slightly different way she wants some more longer term treaty change with -- which means the 27 countries in need tighter here is gonna gonna have to prove that. First the seventeen actually on the Euro which has been -- -- -- much more -- -- processed. You know France wants the European Central Bank to get in there and buy bonds from other from struggling countries for extended period of time. Angela Merkel that feeling a little bit more confident about that but is still pretty tentative -- doesn't want Europe -- and I talked to portfolio manager today -- said that was actually. Really worry sent. What we also heard at the eurozone today is that basically we're gonna see this strong central banks in Europe. Give money to the European Central Bank which -- funnel money to the giant -- The IMF will -- give that money to struggling European Central Bank very very tricky but they had to get around some -- step ever -- about a hundred. To 200 billion euros but I talked to that portfolio -- -- said okay. That's -- -- -- thick it is not doing in Montana just ahead and it. Okay we've got also some big news this morning in the tablet wars tell us about what's gone on there. A mammogram an action -- this is really bad and the -- -- maker yeah everybody they make very. Had a tablet called the playbook and it's just not selling and because of that arrogant and just meet Q3 guidance it gee doesn't the low -- and they're gonna admits full year earnings estimates for 2012 they have this clear -- -- about one year ahead and basically because they're taking this massive pretax provision in the third quarter which is about. Almost 500 million dollars due to the fact that have to discount its tablet aggressively to get people defiant and -- buying inventory stocking up so busy getting another sorting -- and -- -- they had been struggling to deliver any kind of positive numbers including. Losing market share I think -- Blackberry to the I've done. -- also this morning we're getting more details on -- does. -- yeah what are the latest details yet so -- trying to raise about 850 million dollars to just over a billion dollars that is lower than we initially had estimated. It's gonna sell that 14% the company and sell shares for about eight dollars cents or about ten dollars. It basically guys the company anywhere -- seven -- half billion to about ten billion black Italy and surely we got it is gonna value the company at twenty billion. Which is amazing but they lower the price because of all the market turmoil here. Revenue for the third quarter -- was up 80% from a year ago but net income fell about 50%. So I think basically -- and makes its money by selling virtual schools to gamers -- FaceBook but pretty relying on FaceBook to make their money. And it's one of the largest tech IPOs we've seen this year mean Groupon is only 700 million dollars so it just raises the question you know how well -- do. How Alice I mean it is group -- Well below its IPO priced. That's a big question mark and that B all right -- -- thanks so much into what we're look at the -- before we let it go it looks like the rally is extending right now the Dow up about 87 points. Alex -- life.
This transcript has been automatically generated and may not be 100% accurate.