The markets seemed unsure of themselves this week— big gains on Tuesday, a drop in late trading Thursday, and big swings in both directions Friday.  The very positive jobs report Friday prompted some early gains— only to be reversed later in the day. When all was said and done, the Dow was up .77% for the week, the S&P 1.32%, and the NASDAQ 2.6%.

Looking forward to the holiday gift-buying season, there is some concern that inventories are too low, which will result in lower sales levels than what may be demanded. This shortage of supply would, however, enable retailers to earn higher margins on the inventory they do have- there would be no need for product markdowns.

Next week is a relatively light week for economic data. At the end of the week, we will be watching continuing claims for unemployment, retail sales, and consumer confidence.  Check back soon for our 2010 market outlook.