Back to top

View the PFP Archive

Plus 5 New Strong Buys for Today
Kevin Matras   
Profit from the Pros
By Kevin Matras
Executive Vice President
Zacks Investment Research

Stocks Down On Friday And For the Week, Four Weeks Left To Go In 2021

Stocks fell on Friday after a disappointing jobs report. And it capped off a volatile week which saw all of the major indexes down for the second week in a row.

The Employment Situation report on Friday was expected to show 545,000 new jobs created in November (525K in the private sector and 20K in the public). Instead, we got 210,00 (235K private and -25,000 public). The good news was that we saw the unemployment rate tick down from 4.6% to 4.2%, beating the consensus of 4.5%. And the participation rate ticked up from 61.6% to 61.8%, beating the consensus of 61.7%.

Quite frankly, 210K new jobs is still good news. But it's quite a miss from the 545K that was expected, and the upwardly revised 546K from October.

The biggest job gains came from the following sectors and industries: Professional and Business Services added 90,000 new jobs; Transportation and Warehousing rose by 50,000; Construction gained 31,000; Manufacturing also increased by 31,000; and Financial Activities added 13,000 new jobs.

The biggest job losses were seen in Retail Trade which declined by -20,000 jobs. An interesting statistic given that the holiday shopping season is now upon us.

The other thing that weighed on stocks Friday were comments by St. Louis Fed President James Bullard. He actually said the "report seemed quite strong across the board," in spite of the "headline number." And he followed it up by calling it a "very tight labor market." But he also said that he'd like to see the Fed end their bond-buying by March (which is roughly 3 months faster than the June end date people have been expecting), and he'd like to see two interest rate hikes next year (also a more accelerated timeline than what the market has been expecting).

Granted, he's been vocally pushing for a faster taper pace and rate increase for a while now. So this wasn't exactly breaking news. Nonetheless, that definitely contributed to the selling pressure on Friday.

And, of course, you have the growing uncertainty surrounding the Omicron variant, where cases have now been reported in 5 states.

In spite of the aforementioned headwinds, and the jobs report disappointment, there's plenty of positives as well.

While there's literally only 4 weeks left before 2021 comes to a close, GDP growth is expected to accelerate into the end of the year. And that bodes well for the market, especially since December is typically a strong month for stocks (last few days notwithstanding). Then add in the forecasts for another year of robust growth in 2022, and it looks like there's a lot more upside to go.

But it does look like volatility is here to stay for a while. So heads up.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research


Dump Gold, Buy Bitcoin (And This?)

It's a controversial call.

But former Wall Street VP and hedge fund manager Teeka Tiwari says he "no longer expects gold to adequately protect your wealth against the money printing happening right now."

And for the first time in Palm Beach Research Group history, an editor is telling readers to sell gold... and buy Bitcoin.

But this is about more than just one coin...

A new class of cryptos is on the rise, Teeka says. Coins he believes could do MUCH better than Bitcoin in the coming months.

Even better...

You can get the name of his next top crypto pick for free! Click here.

Most Popular Articles from

Image: Bigstock

4 Solid Microchip Stocks to Buy on Soaring Global Demand

The positive trend continues with chip sales growing every month and hitting new record highs. Read More »

Image: Bigstock

Don't Waste This Opportunity to Buy These 3 Outperformers

When top financial institutions in the world are the largest holders of these stocks, there's a good reason for it. Read More »

Image: Bigstock

5 Momentum Picks for December Amid Virus and Fed Uncertainty

Each of these stocks has a favorable Zacks Rank and has showed strong momentum over the past month defying volatility. Read More »

Image: Bigstock

COVID-19 Vaccine & Drug Makers Gear Up to Fight Omicron

The Omicron variant has ignited fears that currently available COVID-19 vaccines and treatments could be less effective. Read More »

Image: Shutterstock

Low-Beta ETFs to Fend Off Market Volatility

Low-beta products exhibit greater levels of stability than their market-sensitive counterparts. Read More »


Today, See Zacks' Top Stocks for Free

Starting now, you can get instant access to the latest picks from our hottest market-beating strategies. From 2016 through 2020 they gained +381.1%, +424.1%, +429.0%, +477.8%, and even +580.0%.

Zacks will also give you a free Special Report, Top 10 Stock Screening Strategies with formulas you can use to find high-potential gainers anytime you please.

See Stocks Free >>

Image: Bigstock

Bull of the Day: Salesforce (CRM)

Shares are on sale given this data dominator's steady growth -- and Benioff isn't going anywhere. Read More »

New Zacks Strong Buys for December 6th

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »


Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on

Download our Zacks App for Apple iOS
Download our Zacks App for Android

Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market.