The market finished the week with modest gains and the major averages  performed similarly. In the last couple of   weeks the market has been

Consolidating

its strong gains from the mid October lows and the indexes look in decent shape both on a shorter and longer term bases. Although most sectors have traded in a narrow range, few sectors have given up much ground with the exception being the energy sector which continues to be under pressure due to lower oil prices, excess supply and overall lower demand from the global economy

 

This weeks’ major economic news came on Friday with the Labor Department reporting that the U.S. added 321,000 jobs in November and further illustrates that the economy is picking up steam. Also in the job report is the increase in average hourly earnings which rose by 0.4% and was better than expected. This is important because if hourly earnings are rising then overall income will rise and since consumers make up nearly 70% of GDP, this will lead to an increase in economic activity. This also means that the Fed will likely start raising short term interest rates sometime in 2015.

 

 

All for this week.