Stocks Open High on Jobs Numbers, News from Europe

Simon Constable explains why US markets continue to rise.
8:28 | 11/03/11

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Transcript for Stocks Open High on Jobs Numbers, News from Europe
Dow futures were higher before the bell this morning. Joining added discuss all the business headlines at this hour Simon constable from the Wall Street Journal -- -- good to see if concedes that aren't so start -- -- the prime minister George Papandreou has. What many saying thrown in the eurozone and his own government into turmoil it has to do with his plans for a referendum on the bailout plan. That was already approved what is the latest there. Until the took the latest is as increasing from oppression four big Greek government district saps the bailout plan and forget the referendum I'm just and and -- -- -- there and I'm going. But -- into the mix we canning also conflicting reports that he's offered to resign nom. Fact coming out of the BBC and -- down as -- and then there -- denials coming out so there's a lot of confusion going on calm him him stepping down around me -- them may be a good thing -- may not be good thing but there's a -- of uncertainty and if there's one thing investors don't like it's uncertainty some -- we don't even more on Sunday today. That we originally thought we came in expecting a little bit and now we've got along so not very -- at -- All right we have some breaking news to report Simon and that is of the European Central Bank. Has just cut its key rate what is the significance behind that. Okay -- -- cut it by a quarter of a percentage point emotional -- may not sound like a law but it is significant and I'm leave the European Central Bank has been that typically. Very -- -- cautious over inflation men have been worried about inflation but basically what this is saying -- worried about the Greek crisis is worried about the European economy. And -- -- white about the stresses in the financial system inside this is designed to alleviate all of that's. But by doing -- them some people assignment that's somehow a little bit little too light little. To too little too late. Our President Obama is in France at the G-20 summit today as trying to what is he saying. About Europe's crisis and what needs to get done what he says it needs to get fixed karma and I think -- -- on both. Hit big surprises that come but he made some strong language and it's it's not a good that he waited that has made many people stop acting like grown ups now dominate the under the most. Yet I have Simon okay sorry I. Was just hearing his voice that -- but he added teeth when he was flesh out the details of the plan initially be implemented. And -- been a fully and and decisively way. That -- that the strong with strong words from him and he's right it does need to get thinks it needs we need to get some certainty around it is Greece. In the Arizona is -- outside the US sound one young fan insist we need to know definitively we need to know of -- has defaulted on -- or if it's going to. Coming gets out of -- get a behind us but this sort of you know neither Renault around time and everybody sang in -- one of his going on is just no good for anybody. Easier said I suppose things done at this point -- let's switch gears and got more companies reporting earnings today. Any headlines any surprises. -- OK well we got some we don't target sales rising which is pretty good youth thing -- climbed 3.3 percent -- -- that. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- By those stores that have been open at least one yes they got a comparison that's that's correct. Right okay it's Thursday which means weekly jobless claims are out and they have actually dropped below 400000. To 397000. How big of a deal is this time -- Well -- it's good that it's below 400000 that that is good because land that will be a level that would be consistent way if sustained job growth in the US economy however it's it's -- 397. Thousands -- it's a very very very close to 400000. -- what we have seen consistently. -- is they prior week's mama's got revised up and that Hamed again this week some last week with 402000 usually very close and it was revised up to 406000. Suck if this 397000. Gets revised -- like you know a lot of past weeks. I'm Diana has sound of them -- -- -- -- of one of thousands up we don't bring up and it will be good if they would just you know be be much lower than 400000. Pound consistently and we might get. But it's -- you know it's not terrible which I guess is assessing any from may on this one. At -- the right direction Shirley -- we're certainly certainly going down even if it's just by a couple thousand jobs. OK also out this morning Simon numbers are productivity and cost anything big to report there. -- productivity -- a rose by three point 1% I was that's pretty pretty impressive calm manner and as much more than that expectations of two point 8%. I mean these numbers might sound small but when you suck compounding them they really make a big difference. Now the -- -- of this is that unit labor costs exceed the cost of delay the component of cost of producing a widget is something I -- every it is. Aids is actually down 2.4 percent so that may be I'm downward pressure on wages and that isn't right because when people have less wages they spend less so. The other many ways to look at this from the some good ways that we don't productivity about ways is that maybe it's just the cost component which means less money in people's pockets. -- OK let's turn now to the other big story which is MF global the company -- of course -- former New Jersey governor. Jon Corzine. What is the latest on the company's missing millions. As well as -- that's still missing and we got the New York Stock Exchange pointing to. -- -- this and saying this is a -- great example of why we need more on global risk management and we need to united to really focus on land that's how we need to focus on the systemic risk problems lack of you know that things slack caused the great financial crisis in 20082009. I'm everybody's wondering what's going on here don't calls on himself -- stayed remarkably quiet -- off on this. One thing I think music is good is that nobody's seven proposing -- -- company and time and and do what we did in -- and 20092009. So that's a good that's you know that's evolution we've. We can't there's not a lot of taste for that right now are rarely -- there isn't so that's good I guess that's good news yeah. All right let's find Amazon they've announced are getting into the library is what's the strategy -- -- -- the strategy that -- -- you know expand -- services and -- -- people into menu products notably of the Kindle and the Kindle fire which well what released earlier this year but you have to have a Kendall a Kendall's fly which is and you tablet. And you have to be subscribe attack Amazon prime minister you can do all that any bailout -- books. Come from from my mama and that's I guess a way to get people hooked into this -- And -- we will put in the Amazon promises it's about -- -- nine dollars a year to get Amazon prime media free shipping and and then on some video service. And I you get -- -- nominates it's all part of that competing and it's. It's a brutal space the the text based particularly. Particularly -- -- -- wants to compete with Amazon on an athletic -- and -- -- so converging in the middle -- Yes seems like every week there's a new strategy for these companies -- -- -- keeping and I am today's. Yes of course to the words lots of great data moves to -- -- -- on the Greek situation middle factory orders -- ten and that some manufacturing sector what's -- what's going on that will be looking back at 10 am. And our friends on the markets up -- the Wall Street Allentown thirty will be analyzing met Diana I am sure. OK we're let's look at the big board right now on the Dow up by more than a percentage point right now some think is behind this investor optimism this morning. The the I'm of the -- relatively good if I'm jobless claims that I've -- to be part of that and -- this right -- by the European central bank of going to be -- propelling us stocks higher as so. Tom you know I would I would think -- -- back continue through May be -- taper off. I don't think these great problems are over allow I think we'll be talking about the next week after week after that and the week after that. I hope you are wrong Simon I -- them to Simon got to look for in -- Wall Street you're always a pleasure to have you thanks Simon. Thank you.

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

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