In Case You Missed it: Jobs and Fed Calm Stocks, Market Could Sour Real Soon

There's a flip side to every coin -- and this market isn't shy about acting on that.
Author:
Publish date:

All three major U.S. indices ended Friday solidly higher after the December jobs numbers came out. 

The Dow Jones Industrial Average rose more than 700 points. The S&P 500 rose more than 80 points, while the Nasdaq posted a gain of more than 260 points. The U.S. added 312,000 jobs in December, putting economists estimates of 180,000 to shame. Stock investors loved that. 

But there's a flip side to every coin. This could cause inflation, which would prompt the Federal Reserve to raise rates in 2019, which the market has made clear it doesn't want to see. "In its current mood, the market will probably choose instead to fret about how much more hawkish the Fed might become as a result," said Senior Investment Manager of Aberdeen Standard Investments James Athey. He added, "And that means more cold turkey for markets. How very appropriate at this time of year." The same was echoed by Wilmington Trust's chief investment officer Tony Roth, in a conversation with RealMoney's Kevin Curran. 

Elsewhere, Chevron Corporation (CVX) - Get Report rose more than 2% to $110.82 a share. Curran wrote that its stock price, which got hurt in the latter stages of 2018 -- and oil prices were dropping then -- has rebounded some of late, as big oil producers around the globe are cutting production

For some acquisition targets the company might consider amidst a still discounted oil environment, check out Curran's picks here.

TheStreet's own Jim Cramer also suggests Chevron would be wise to hunt for an acquisition