Will Santa Deliver for Markets?: Dave's Daily

Markets are being well managed by the bulls. Jobless Claims data was about the same as previously, but frankly how much is from people finding some seasonal work and those losing benefits? The GDP data at a measly 1.8% isn't very encouraging for this period in a recovery--it should be more like 4%. Just as troublesome as the GDP data was that per-capita disposable income is now reported to have been shrinking at an annualized -1.9% rate during the third quarter. That's a very bad sign. But for now we could just ignore all the poor earnings we're seeing recently and go with "the beard" over the next week. After all global monetary authorities have indicated they're ready to back up all too big to fail financial institutions. The Bernank confirmed his Keynesian bona fides by telling Americans to stop saving and start spending.

Our good friends at Consumer Metrics have rendered their critical and thoughtful judgment on current economic and consumer data.

All the hoopla over a payroll tax cut extension amounts to $80 total. And, as Obama himself has pointed out, not doing this would negatively affect Friday pizza nights--it's pretty hilarious. Rumors have it the GOP will accept the 2 month extension in the interest of peace. It's no surprise and a temporary political victory for POTUS who will then have to deal with it again in February. What fun!

Volume is dropping like a stone and most likely tomorrow we won't even be posting Friday unless something notable occurs. We will get Durable Goods Orders, Personal Income and Outlays and New Home Sales.

As indicated volume was light and breadth per the WSJ was positive.

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