This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Congratulations U.S.A., Things Look Normal Again

NEW YORK (TheStreet) -- The strangest thing happened the past seven days: the U.S. returned to normal.

The House of Representatives, controlled by a Republican Party that has in recent years rejected a vast number of Democrat-sponsored bills, approved a bi-partisan budget proposal crafted by a Senate Democrat and a former GOP Vice-Presidential nominee. That's almost historic in this age of partisan posturing.

Republicans apparent willingness to agree to a compromise, a veritable Washington deal-cutting, has the makings of a seismic shift in the otherwise dysfunctional GOP. The shaking of hands between erstwhile enemies prompted Jon Stewart to exclaim "Deal? Deal? What type of witchcraft is this?"

Last Friday, the Bureau of Labor Statistics released what many economists and analysts were calling one of the most promising labor reports since the 2008 financial crisis, and the markets jumped on the news instead of falling on worries that the Federal Reserve will scale back its stimulus program.

TheStreet's Jim Cramer called that November nonfarm payrolls report "perfect," adding that the topline number wasn't running ahead of itself and that the details showed strong fundamentals.

Mike Serio, regional chief investment officer for Wells Fargo Private Bank, went so far as to call it a "paradigm shift" for stock markets to begin moving on fundamentals instead of Fed intervention.

On Friday, the Commerce Department said November retail sales rose more than expected, despite a weak Black Friday weekend -- traditionally the biggest shopping weekend of the year.

The only worry right now may be whether the S&P 500 can stem its December losses so as to finish up more than 25% on the year. And even that isn't worrying some analysts, who say, historically, the so-called Santa Claus rally begins next week.

"Most of the professionals are looking for that Santa Claus rally," Chris Bouffard, chief investment officer at The Mutual Fund Store, said in a phone interview. "So many of them are expecting a melt up into the end of the year."

Congress is working together, markets are rising on good economic data and consumers are spending more than economists had forecast. Maybe Americans can take a deep breath and realize, things are actually getting back to normal.

-- Written by Joe Deaux in New York.

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SPY $205.74 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs