[video] Quick Take: December Taper? Not So Fast
NEW YORK (TheStreet) -- The nonfarm payrolls report for November beat economists' expectations of 185,000 jobs by 15,000. The unemployment rate fell to 7% from 7.3%.
Although this is another better-than-expected jobs report, it doesn't necessarily mean the Federal Reserve will taper soon, said Doug Roberts, chief investment strategist of Channel Capital Research.
Roberts told TheStreet's Debra Borchardt that it hasn't been uncommon for investors to interpret good economic news as bad news and vice versa, because good economic data increase the likelihood of tapering, whereas poor data decrease the likelihood.
He said stocks are probably rallying on this report because market participants view the additional jobs as a one-time event resulting from the government shutdown, rather than as a positive trend that will continue.
Roberts also added that many investors consider Janet Yellen, the nominee to be the next Fed chief, to be quite dovish.
He concluded that the Fed may discuss tapering at the next meeting but is unlikely to begin doing so for at least several months.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV