Stock Market Update -Dec 7th

More encouraging signs in the market as it rallies in the face of bad news. We got really bad manufacturing numbers in the middle of the week -but the market rallied! We saw over 500,000 jobs lost last month, and another 500,000+ new unemployment claims this week. Every week we see over 500,000 new unemployment claims, yet the market is rising! The total number of unemployed is now over 10 million.

The only sliver of good news is that Oil continues to fall, closing near $40 on Friday. All other commodity prices continue to sink as well.

(click to enlarge)

Next week we should get the final word on the bailout for the automakers. The market is showing signs of a small rally here, but with all the volatility, it may not last very long so be careful.

It's official: Recession since Dec. '07
U.S. job losses worst since 1974 as downturn deepens
Economy Loses 533,000 Jobs in November
Record 10% of U.S. homeowners in arrears or foreclosure
Retail sales dropping like a rock
Investor fear drives US Treasury yields to near zero

Tribune prepares for possible bankruptcy filing: WSJ
Price of gas hits lowest point in nearly 5 years
OPEC head: oil production likely to be cut soon
Merrill Lynch Says Oil Could Fall to $25