Dec. 06 - Summary: Blue chips in best one-day climb since October as hiring jumps again, jobless drops to 7 percent ; LPL's Canally sees ''decent chance'' of December cut to Fed stimulus; Consumer sentiment rebounds in early December; Google hits record high. Conway G. Gittens reports.
Good news it appears is good news again. Stocks squash a five-day slump with the Dow's best one-day gain since October - thanks to a stronger-than-expected jobs report. But blue chips still suffer their first weekly decline in nine weeks, while the Nasdaq just about ended the week where it began. Hiring bounced back in November, bringing the three-month average of job creation to about 200,000 a month. Even more impressive, gains were widespread and unemployment lines dropped to a five-year low of seven percent, even though scores of previously discouraged Americans started looking for work again. With the labor market looking relatively better, Wall Street was more split, some economists predict the Federal Reserve won't start pulling back on stimulus until next year, but LPL Financial Economist John Canally is not so sure. SOUNDBITE: JOHN CANALLY, ECONOMIST, LPL FINANCIAL (ENGLISH) SAYING: "I think the Fed is getting a little bit concerned about quantitative easing, How much they are doing? What they effects are? So I think they would rather act sooner, rather than later, so I think there is a decent chance that you get some kind of announcement in December. But it might not be the full taper." Adding to positive signs, consumer sentiment bounced-back sharply at the beginning of December. The holiday shopping season may not be a bust after all. It looks like all Time Warner Cable wants for Christmas is a buyer. Well it may get its wish. Sources say Comcast, the top U.S. cable TV provider, is seeking advice on whether it should play Santa Claus and come up with an offer. But sources say don't count out Charter Communications. Rounding out the day with a big mover: Google hit a lifetime high just under $1,070. The stock is up 50 percent year-to-date. And finally, a rising tide lifts all boats. European stocks swept higher on the back of firm job numbers in the U.S.