The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
But what Palazzolo expects to happen is a steady deceleration in labor market gains and economic activity for the next six to nine months and, provided that happens it "should allow for the Fed to stay on hold at current levels," he said. The jobs data also helped push U.S. Treasury yields lower for the fourth consecutive session. During the session the benchmark 10-year Treasury yield hit its lowest level in over five weeks. The move in yields supported stocks.
Welch also noted that solid earnings reports were helping stocks as companies have expanded profit margins.