I think the report was quite strong and will ultimately be positive for stocks.
Stocks and bonds rallied at first, but now have hemmed down. Stocks are coming off a superb day yesterday, so that may be a little profit taking.
We've heard some disappointing reports about the final couple of weeks before the holidays, so we won't see as big of an increase in December, ... but when you combine November and December, this is about the best holiday season we've seen since 1999.
The stock and bond markets are looking at the report and seeing the signs of strength, and they know the Fed is doing the same.
What it does show is that the Federal Reserve has more work to do.
An unemployment rate below 5 percent is a sign that the job market is getting tight. These kinds of job and wage numbers will keep consumers spending right into spring.
The CPI captured the center stage as it's the biggest one-month increase in 25 years, ... We certainly know why, with energy prices having skyrocketed.
(Tuesday) won't be the last. This is not the sort of cheap and easy (money) period of the past several years.
This is in spite of gasoline rebounding 10 to 15 cents in January. This also squares with the jobless claims data.
If you take into account the revisions, the average for the last three months are still very strong. It's consistent with the housing starts number. People are still active in home buying. This decline in January is probably a month dip. It's a head-fake.
