But how will a number that high affect the hopes for a rate cut from the Fed next week? This stock market is so worried about recession that, according to Darda, the Fed will be forced to cut because of the credit problems, not the labor numbers.
A 50 basis-point rate cut is less likely, though. Darda said he wouldn’t expect that unless the jobs data was “something close to zero,” indicating a “total wipeout.” It would, however, be possible to see aggressive cutting in the discount rate to bring it into line with the Fed Funds rate, he said.
Got something to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to email@example.com.
Trader disclosure: On Dec. 6, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), Macke Owns (YHOO); Najarian Owns (AAPL) Options, Najarian Owns (GOOG) Options, Najarian Owns (YHOO) Options; Seymour Owns (AAPL), Seymour Owns (CFC), Seygem Asset Management Owns (CX), Seymour Owns (F), Seymour Owns (INTC), Seymour Owns (MBI), Seymour Owns (TMA), Seygem Asset Management Owns (VIP), Seymour Owns (XOM)
Michael Darda Owns (EEM), (EFA), (EWJ), (IYM), (IYT), (IWY), (IYZ), (PBW), (PPA), (QQQQ), (SPY), (XLE), (XHB), (RRPIX)