Transcript for Stock Market Soars: What's Behind Dow's Jump?
Coming off investing in the stock market in almost three years the -- nearly 500 points yesterday on good news out of Europe and here at home the big question of course can at last. And doesn't mean a... See More
Coming off investing in the stock market in almost three years the -- nearly 500 points yesterday on good news out of Europe and here at home the big question of course can at last. And doesn't mean a stronger economic recovery is taking hold for that let's bring -- ABC news financial contributor Trish Regan and Trish boy what a move. Yesterday and he came after this coordinated action by -- by the central banks here and in Europe to loosen up credit. And that is key because investors were so excited that all the central banks from around the world -- joining forces. To try and -- this crisis the problem though George is that a lot of people think that this is simply abandon all its doing is buying a little bit time. For Europe to try and deal with its real fundamental problems. But it doesn't cure. Europe's -- and we've seen this several times this year rally is based on actions by the banks that it falls back. When the governments don't come together exactly because then people -- group. We still have some real issues these European countries have borrowed too much money they can't pay it back. But there is good news here in the United States is what we saw these big big sales -- coming off of Thanksgiving and also -- jobs report yesterday. Showing an initial -- to -- -- 200000 jobs gain in the month. Of November and some bright news. On home sales as well up in almost every region of the country and that was all very very good to see and you look at the home sells for example not really shows. Confident on behalf of the American consumer don't forget the home is probably the biggest investment that anyone is ever gonna make -- they're willing to put back in the money down. Take on that kind of risk that's a big deal when you look at this ADP jobs report. It's very encouraging to see more than 200000 Johns being and becoming but the big the big report to watch is coming up this Friday that the US Labor Department. And you want to see a big number George because keep in mind it's a 150000. Jobs think you need to be adding every single month. Just to break even with a population growth that's coming into the world that we don't just treading water even in about 200000 you -- -- -- 300000. Plus consistently for months at a time so what's the single most important thing you're going to be looking -- to say -- we are back. We are back jobs that six. But I don't -- -- point to Europe because of the -- is these clouds look out there as long as there is continuing to have problems. The fear is. How and when might that spilled over into that everybody has to understand that a recession -- -- for them interest of problems could actually drag us back as well exactly patriot. -- -- -- At least we had a they have promised and yeah. -- don't like that yeah. -- to make sure that basically until we continue that's that's the truth.
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