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Hot Stock Minute
It's a side of the market we have not seen for a while. The Dow and S&P 500 both rallied to end a five-day losing streak, responding to a stronger than expected jobs report for November. The Labor Department reported 203,000 new jobs created last month prompting the unemployment to drop to 7%, beating consensus estimates of 180,000 and 7.2%. That 7% unemployment number is the lowest it has been since November 2008, but it is also a reflection of thousands of federal workers returning to work after the government shutdown in back in October. The Dow Jones finished up nearly 200 points and the S&P 500 finished the day up 20 at 1,805. The reults broke the week long trend of good news for the economy, bad news for markets. Investors have been worried about the Fed tapering its bond buying program if the economy continues on its upward trajectory, but many experts now believe the Fed will not pull that tapering trigger this month.
American Eagle Outfitters, Inc. (AEO) took a big hit today dropping more than 9% after its earnings report came out this morning. It hit on expert estimates of 19-cents a share which was a massive drop from last year's 41-cents a share. But what is really worrying investors is American Eagle's projections for the fourth-quarter. The retailer is projecting earnings of 26-cents to 30 cents per share, which is far below the expected price of 39 cents.
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