- DJIA sank 65.14 points this week (-82.68 on Friday), 0.52% to 12,398.01.
- Nasdaq Composite was a different story, up 18.96, 0.78% and closed Friday at 2434.25.
- S and P 500 fell 8.59, 0.61% to 1409.71.
- 10-year Treasury yield rose 15/32 to 4.648%.
- Crude oil dropped a whopping $4.74, 7.76% to $56.31.
This is the part of economics that really has casual stock market observers scratching their heads--167,000 new jobs were created in December and that caused the Dow to drop 83 points? Huh? Why is such great news bad for stocks?
Remember the old rhyme, when rates are low, stocks will grow? Well, job creation that is too rapid is indicative of an economy that is growing too fast and that inflationary risks are present. To curb those risks the Fed raises interest rates. When rates are high, stocks will die.
At least the market has found something to obsess about besides oil.