Private Businesses Hired 325,000 in December

Jeff Macke looks at market reaction to increased employment.
8:00 | 01/05/12

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Transcript for Private Businesses Hired 325,000 in December
Dow futures were down this morning on renewed worries out of Europe joining me now with his take on this morning's business headlines is Jeff -- -- is to break out. On Yahoo! finance happy here Jeff great to see in so desperate to see you happy new year so that was some breaking news this seems to be in new pattern that we got better than expected numbers this morning on the jobs front so lets out with the good news EEPs as. The private sector added. 325000. Jobs in December just 175000. -- expect it. -- -- well I think the expectations are the key here for folks who don't follow this stuff all day is numbers are just sort of abstract and harder for your thumb finger on. But this is twice what was expected in terms of jobs added to the economy that's unquestionably great news everyone's -- -- -- important -- all the data is flawed this and the other thing. Why waste your time this is better than expected the economy continues to glow -- kind of -- nice Lopes. And that they -- jobless claims which we look at every Thursday. Were down 151000. Last week to 372000. Help us read into those numbers. Well I haven't come on -- -- four -- and -- said that the four week moving average is what matters the four week moving average and jobless claims. Is now at levels we haven't seen since 2008. Before this entire financial catastrophe got started. Again this is unquestionably -- good number in -- below 400000 do you folks at home. Is positive that's sort of the the marginal imagine a line here the Mendoza line if you will a jobless claims and we beat that figure that's terrific. Not only -- for weeks and weeks and weeks now. -- okay this the first time ever talking to you. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Well let me preface it by saying the ghastly ending figure for the market that game is. There's way too many variables -- and -- accurate -- predicting the weather -- exactly that said the Dow will close this year 141051. Precisely at the 15% gain slightly better than expectations. And I -- pretty positive on that we can roll tape on 1231 and I'll look like Nostradamus. You -- to put it later on Najaf right here right now we got -- let me -- okay. Let's talk about gold reached record highs in 2000 at eleven that of course have backed off a bit in the last several months -- -- that going -- -- -- -- you know I think gold the best thing that could possibly happen for gold bulls. Is that this just kind of flattens out for a while we've taken some of the euphoria out of it and that's exactly what gold needed a little bit of arrest. If you can resume its upward pays on the -- -- basis gold still makes a nice long term investment. Are any other area with a lot of variables these days Jeff oil prices and let's talk about predictions air of course we've got sort of a wild card threat from -- Ron that it may close the strait of war that is. I'd find that hard to believe that the US navy would allow that to happen but -- how does that factor in oil prices. You know I ran as an -- a little crazy and we've known that for at least twenty years and beyond that. Here's the thing -- if they close the Strait of Hormuz they're going to be bombed into the stone age by this government it's it's a fight they simply don't want to pick. But that unrest there's gonna drive oil higher oil can go higher for two reasons one. Global growth in the economy to what's going and I ran our -- pushing it higher right now that's unquestionably a negative for the consumer. Does not end up affecting gas prices in the near term. It it dies but the gas price thing if we get my prediction -- again 141051. For the year and the 50% gain is gonna be leery of some of those concerns at the pump. If we continue to have a weak weak economic picture boy that those prices at the pump are really -- impact consuming a lot of terrible ways. Aren't let's talk about Europe France and Italy held bond auctions today and are forced to offer higher rates and they want it to you. -- -- should we read into that. You know that these numbers have -- European debt yields we're getting into the deep end the majority propeller -- finance world here but. It's it's concerning. This is the borrowing costs these countries the cost for them basically staying alive -- 7% number on Italy. That's concerning that's raising some eyebrows on the street overall however. European weakness is being priced into stocks which is -- seeing our market separate from what's going on Europe that's very encouraging -- we're certainly not seeing it out on at least the first and biting it and three weeks ago the -- was -- -- -- -- -- -- France news -- Italy. Would have you and -- talking about something else entirely we'd be talking about 3400 points off on the -- so you have to accept this not -- complacency. But as European weakness getting priced into. -- -- OK and big story back here at home japs Kodak. You know one of the titans. In the of the past is on the brink of bankruptcy what are the company's options at this point. Well I can go gracefully -- that you go kicking and screaming into that good night. That's pretty much what they got going they're trying to sell off -- assets -- patents. They've been doing this for a while it's really in this circle of corporate life they've been adult -- -- -- 131 years old in the company twenty years ago. Didn't manage to separate itself from being a film company and in that just being a picture company overall -- -- they didn't make that transition. They've been -- dead company walking ever sense. It'll be interesting to follow that story in coming days. All right we're gonna put on the spot a little bit here Jeff as we always do you got a new -- Yahoo!. -- -- Scott Thompson CEO effective next Monday I give us your thoughts on this it's getting a lot of. Press it's getting a lot of press it's a curious -- I'll be honest with you and again just between you and Iowa -- gonna -- this can't leave the room. But if they were gonna make a statement -- Yahoo! was going to remain free standing there would have gone big guns here there would have -- with someone with a huge name. Yeah this boss may be it may may be a great -- -- in May be the reincarnation of Steve Jobs in terms of management. But we don't know yet so it's a clean slate form I still think it's -- was up for sale for the sum of the parts this really doesn't change anything. In terms of what Yahoo!'s got going on. There's got to keep the trains running on time until we come up with some transaction -- plan for the future you don't feel like and you -- -- make it less likely that the companies up for sale. And you know it it's the chairman -- is saying. That we don't plan to go private anytime soon which is of course exactly what you would say if you're trying to drive the price up of your company. If you plan to go nonpublic very soon so. This this doesn't change anything really Begin to move we've got a manager got a CEO now but keep the trains running on time at the company really wants to drive the stock higher as we said last week. All MacKey all the time. OK let's switch gears here some -- is US car companies -- -- their best year since a financial meltdown three years ago. They along the road to recovery at this point. They're very far night I need to say I'm long for stocks -- going to be talking my -- here. But the age of the average car on on the streets is older higher than it ever has been. So it's becoming economically reasonable to operator part of something new I think these automakers -- ones that are executing again like my portfolio holdings Ford. They're gonna see a bright future and I think that these companies are really proving their survival instinct their ability to kind of make it through tough economic times. Well the road tested if you will and from here on out it's just going to be individual company execution the crisis for the auto industry appears to be evading. That bright spot where all is looking for you an optimist I don't know if you know this but I've noticed that anything else are going to be watching this Thursday morning. -- now I need to be optimistic now don't -- I think -- that we've had a huge rally at the start of the year which is great that's fantastic. We're up -- -- 1% or so I wanna see you back consolidate keep your eyes on the market staying positive for the year -- the next few days aren't a buyer of stocks here and turn that frown upside down. -- not just because I'm an optimist but because I like making money. -- let's -- -- like at the Dow right now just in the first seven minutes of trading here down a little bit about a half percentage point. We'll continue to watch it throughout the day Jeff MacKey of Yahoo!. Thanks so much Jeff have a great day. -- thank you YouTube.

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

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