The stock market rally worth about 300 points on the Dow over the past three sessions is “totally irrational,” according to the curator of the Money Market Index economic barometer. In particular, investor enthusiasm over Friday's monthlyjobs reportfrom the government is misplaced because a large portion of the 163,000 new non-farm jobs reported are temporarily and likely to vanish soon, says Dan Geller, chief research officer of the index. "The rally on Friday after the release of the employment figures and the consumer confidence index really has no economic merit," Geller says. "It's totally irrational." Like the surge in food service and other hospitality positions, the market surge will prove temporary as well, he says. Looking inside the government's figures, which also showed theunemployment rateclimbing to 8.3 percent, many of the gains came from industries that generally benefit from summer vacation season. Food and drinking establishments boosted hiring by 29,000, while temp services jobs increased by 14,000. Moreover, education and health care added 38,000, after falling 6,000 in the previous month, a move Geller attributes to the Supreme Court validating the national health care reform law. He deems those jobs to be "on shaky grounds."... Continue to read.
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