Data showed that the U.S. economy contracted by 1% during the first quarter of the year. Consumer spending declined in April, the first decline in a year even though disposable income rose. The overall economic picture remains bleak.
The concern is that the Federal Reserve may consider "tapering" its bond buying program at its Dec. 17-18 policy meeting. We do not feel the U.S. Federal Reserve would use one "questionable" report to modify its current stimulus program.
While the "jobs created" number was sharply higher than the analyst estimates of around 120,000, the number reported set markets "on fire" and created what former Fed Chairman Greenspan described as "irrational exuberance."