Jobless Claims Hit Lowest Level Since April 2008

Jeff Macke explains how the markets are reacting to recent job numbers.
8:28 | 12/22/11

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Transcript for Jobless Claims Hit Lowest Level Since April 2008
Dow futures were up again this morning leading to a hoax of a Santa Claus rally. Joining me now to discuss the business headlines at this hour is Jeff MacKey -- -- to break out on Yahoo! finance. -- -- -- Seem like -- has brought a few presidents let's start would jobless claims 364000. New claims down another 4000 from last week's encouraging -- and the lowest since April oh wait are we seeing a genuine recovery in the job market. We seem to be Stephanie and good morning to you listen. The trend is what you gotta worry about what these things because they can fake -- one off data week to week. That's not so important as it is the trend the trend is the lowest its been in three and a half years for jobless claims. -- means fewer Americans are going jobs obviously since the lowest level since 2008 it's do it you can't tonight it's good is a great now not even close. But it's better that has been and that's better -- helping out the big sharks struck. Table here's a poke in the -- a little bit also with in the past our GDP estimates this was not as good. Just the economy growing at a rate of one point 8% that's not terrible. What someone like you make it -- -- look at two things one. -- -- on the happy side of plus or minus zero. -- as being under 0% growth is obviously contraction that's no good. One point 8% while I don't make -- really anything -- an idea that 2% which is were growing were moving out kind of a little baby step at a time. Towards some sort of recovery and that's what we expected going into this revision that's what we got whether or not it's point 2% one where the other just out -- That that makes sense to me OK in about twenty minutes -- -- going to be getting numbers on consumer sentiment I'm -- be curious about this. Is usually a predictor -- when it comes to holiday spending overall. It normally is but here's what we got seven here's the beauty of being an analyst -- -- someone watches these retail stocks this time a year. We've got data whore union on the consumer day after days stores are talking about it. Consumer surveys etc. so this number actually means more in the summer time we get less data than it does during the holidays this holiday season is going to be. Average which which doesn't tell you a lot but averages not that bad. Considering a lot of people have much more dire expectations we know what we need to know about the holidays regardless what the consumer says is going on. Okay. Gears here a little -- your employer Yahoo! is making headlines this morning the company's talking about shedding its stake in ventures overseas. -- -- Not just between us that I think that -- just the televised here Nevada's. Yeah -- two people just get it and -- and here's the thing this the deal that they're talking about. Will be something -- not billion most analysts say that leaves Yahoo!. Right around -- two billion dollar market cap company. In this exchange in particular the plan for Yahoo! is what the important thing is we knew they were gonna -- these assets and get rid of them. At some point in terms of shareholders -- they should react we'll tell me what you're gonna do what the seventeen billion and I'll tell you how to react I'm not hearing Yahoo!'s plans on their core business. Personally I think they should all MacKey all the time but it's my choice so -- that each channel I got enough ice that's click magic right there Stephanie is now but it's had said they haven't laid out there's plan yet. I'm in a wait and see mode and -- apologize if that offends the employer. No not at all OK we're hearing about -- that that the founder Mark Zuckerberg has ambitions for his company to become of jet. Lessig is that well -- -- And personally -- to be the heavyweight champion of the world. That's -- my vision and hey hey hey hey I can't get -- and see me fight yet but mr. Zuckerberg wanting to be a blue chip companies so far -- -- I can tell that plan consists of him. No longer dressing like high school slacker and he would like -- no -- strong board. Again these are these are wishes -- wishes were conditions every -- would be Christmas that's not the case and so what we need to see again is a plan for companies all over. Let's if you're looking at a stock you need to know where they're trying to go. And then you -- progress towards that goal and that tells you whether or not to buy the stock. FaceBook is private they have to tell us what they're gonna do about privacy issues and how they're gonna get -- the -- have basically 10% of the civilized world. Are ready FaceBook members -- -- -- -- grow from there that's gonna determine whether or not mr. Zuckerberg -- -- blue chip count. Gather a lot of questions still there clearly aren't getting ugly at a bunch of former CEO was -- -- -- -- -- Chong the current CEO was being pushed aside. What make of this. -- as a rule. Actually -- are kind of grumpy and they don't like the current CEO of course not. Now back it -- everything was better that's basically the -- -- the us in this case they have a beef though with a on the stock is down 40% year to date. And they did something that I never like to see with a company which is they promised something and failed deliver in this case that means that in July. They said our revenues are gonna come in we reaffirm that we're very confident in October they -- exactly the opposite in terms of bottom picking on these stocks. Boy I I hate buying those really big dips in general and this is why we have to see some tangible signs as a shareholder that they're gonna do something material rather than just carpet one another. So strong brand I was thinking on -- let's move on BP is exiting the solar business and of course is a company that already has an image issues. Of course following deep water is this a wise move for them to get out of the solar business. You know it's these guys aren't so when I'm considering dating but no company -- you have to look at a pragmatically as an investor EP. Is never going to be apple -- -- gonna have from the wild DOT's dancing in the street every time they release a product BP is big oil the reputations going to be bad solar. -- I'm sorry environmentalists but it just hasn't prove -- himself. To be a viable alternative energy source so it is a good play it's a Smart play it's a pragmatic play -- -- right thing for being -- do. Okay this story has really sort of raise a lot of eyebrows yesterday at Bank of America saddled with the Justice Department. Over claims that its countrywide unit discriminated against minority borrowers specifically African Americans and Hispanics. What do you make of this who wins who loses here. Well it the Justice Department would like to say that this is a huge victory for them it's not it's the Justice Department doing their job. We continue to sort of picked through the refuse of what was the housing market. And this is a nice step in mopping that up it's not really all that important for Bank of America who by the way. But the sponsors or break -- but has just proven -- allowed tags on the -- -- he's be that that's fine -- it hits this doesn't really matter to them has the stock. In terms of cleaning up their image little bit it's incrementally good -- the only people who really benefit are the folks were plaintiffs and that's. And has should be the case was and we have to drown out any sort of -- discriminatory practices and all businesses. This is an incremental step in the right direction. Okay it's not often here on the show -- that we get to talk about Hungary. -- But hasn't he has downgraded. That country to junk bond status. Is this significant in the larger scheme of the Euro debt problems. Well I'd say no and then stopped talking there but that would leave a lot of dead air. 2011 has been a pretty rough year for S&P Moody's and -- to three ratings agencies. They've -- -- proven very relevance and they've become the butt of jokes. Like me saying that it doesn't matter at all what Hungary's gonna do -- there could not be less relevant country. Pretty much on earth financially speaking I'm sure the Hungarians are nice people and they should take solace in the fact that what hasn't he thinks about them doesn't matter to anyone on earth -- Can't find anything else you want to ask how wants in the market from here until the end of the year which sounds rather complacent and frankly it -- But at the end of the year you get a lot of noise he -- -- matters kind of trying to push the market up. Bears trying to push it down S&P opened the in the Standard and Poor's 500 which is what pros look at. Opened the year at 1250 right now the market is just under that level I think we go back there I think we close the -- relatively flat. And we start again in 2012 -- that's not. It's completely neutral I don't know whether to feel good or bad about that I'm ambivalent. But 2011 was a wash and traders will take -- -- -- -- officially a wash with a 0% gain for the year. We'll just looking at the first minutes of trading as we near Christmas here to have it looks like you're right treating Perry's flat up just slightly 2.5. Points Jeff MacKey co host of break out on on finance. Thanks Jeff happy holidays happy holidays to you thanks -- -- here.

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

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