What To Watch For Friday

Wall Street would probably feel safer hanging out with Plaxico Burress at a night club than bet money on Friday’s November unemployment report. The Labor Department is expected to report the jobless rate rose to 6.8% and that another wave of jobs cuts will be coming.

As unemployment goes up so do the number of claims. Last week unemployment benefits reached 4 million…the highest level in over 25 years. The report comes out before the market opens so it will likely have a major influence in the early going.

Oil closed below $44 a barrel and could be headed below $40. Hard to believe that oil is down nearly 70% from its $147 peak in the summer. Oil and oil stocks don’t always trade in tandem but there was some serous action in the Exxon Mobil (XOM, $76.27, down $2.66) put options.

Specifically, the December 75 puts (XOMXO, $3.25, up $1.25) opened at $2.65 and hit a low of $2.05 as Exxon traded in positive territory for a few minutes after the opening bell. Nearly 12,000 contracts traded hands.

The big wigs of Ford (F, $2.66, down $0.19) and General Motors (GM, $4.11, down $0.79) will appear before the House committee again. They will get some cash but it’s a shame how they must squirm when the goverment has thrown billions and billions to other industries. We cannot lose the auto industry but something has gotta happen quick.

Rick Rouse
Rick@OptionsMentoring.com

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