The January jobs report came in today with the largest gain in four months: 227,000 positions were added, well above the consensus of 175,000 and close to the ADP estimate. The unemployment rate rose a bit to 4.8% . The report’s big hang-up was the fact that average hourly earnings increased by only 0.1%. This is important because it might delay the Fed from raising rates in March, a bullish sign for the market.

The best gains today came in retail and construction jobs with the latter surprising because of the poor results that most brick and mortar retailers have reported. In addition, AMZN has done a tremendous amount of hiring recently. With these positive reports in mind, the DOW rocketed 186 points higher today, while the NASDAQ gained 30 and the S&P 500 jumped 16 by the closing bell.

The banks put in their strongest performance in three months, in part from the White House saying that they would try to do away with some regulations in the Dodd-Frank law. How soon we forget perhaps the unrestrained behavior of these institutions which was the main contributor to the financial crisis less than 10 years ago. There was also talk about doing away with the “fiduciary rule” which spells out the responsibility of financial advisors regarding 401k accounts.

Breadth numbers were strong at roughly 4.5 to 1 on the upside. The VIX is now under the 11 watermark, down by .96 today to close at 10.97. 

Bond yields were steady with 2.48% for the 10-year Treasury Note. The dollar was down marginally for its sixth straight lower week. Gold was a bit higher to $1,221 and ounce and crude oil gained a little to $53.82 a barrel. 

Next week brings us more earnings: DOW component DIS on Tuesday and high-flying NFLX on Thursday. We will publish the complete list in Monday’s notes.  DOW component V hit an all-time high of 86.82 today. AMGN, HSY, and CLX were up today, but CMG was lower after its report.

Donald M. Selkin

These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning.  The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report.  This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities.  This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm.   This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author.  These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.