Friday's Labor Department report showed that unemployment rate unexpectedly jumped to 10.2 percent in October, even though the pace of job losses slowed. How do the numbers affect the markets? David Joy, chief market strategist at RiverSource Investments, and Keith Goddard, president of Capital Advisors, shared their insights.
“I read it as a relatively constructive number, because the trend continues to improve and the headline number will keep consumer confidence under pressure,” Joy told CNBC.
Joy said he expects businesses to lead the global recovery instead of consumers. He added that, according to the Fed statement from earlier this week, it will take a "long time" to get into an inflationary period.
“So I think the Fed is on hold, as they said, for an extended period of time," he said. "I think that means well into next year if not beyond.”
(Another viewpoint: Fed Makes Risk More 'Enticing' Now: Economist)
In the meantime, Goddard said the fundamentals have stopped getting worse and are favorable for many companies and for the economy.
“The power of zero percent interest rates—it’s hard to overstate what that means,” he said. “So the zero percent interest rate is what’s important right now, and it’s that investors are confident that that will last for a couple of months.”
Goddard said investors should be watching to see when the "easy money" policy will be pulled away, which will likely trigger the next correction.
“What we got is a hint that it’s at least 4 to 6 months away and they gave you things to look at to know when it’s coming, but right now, it’s not coming,” he said.
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No immediate information was available for Goddard or Joy.