STOCKS JUMP ON STRONG JOBS REPORT -- RUSSELL 2000 ISHARES HIT NEW 52-WEEK HIGH -- ENERGY STOCKS BOUNCE WITH CRUDE OIL ON OPEC CUTS -- ALL SECTORS ARE GAINING WITH FINANCIALS AND HEALTHCARE HITTING NEW RECORDS -- T. ROWE PRICE HITS NEW RECORD

STOCK INDEXES JUMP ON STRONG JOBS REPORT... A strong November jobs report has stocks jumping today.  The three charts below show the three major U.S stock indexes gapping higher today; and pushing them further above their 20-day moving averages.  The erases the earlier setback seen on Tuesday.  And the day's rally is broad based.  All sectors are in the green led by  energy,  financials, and industrials.  Energy stocks are riding a jump in the price of crude oil following announced OPEC production cuts for next year.  A rebound in bond yields is helping push the financial sector into record territory.  The XLF is being led higher by banks, life insurers, and asset managers (more on that shortly).  Two groups  having an especially strong day are transports which are bouncing off their 200-day average; and small caps which are hitting new highs for the year.

RUSSELL 2000 ISHARES HIT NEW 52-WEEK HIGHS...Smaller stocks are leading the day's rally.  Chart 4 shows the Russell 2000 iShares (IWM) hitting a new 52-week high today.  That index of small cap stocks recently achieved a bullish breakout by hitting a new high for the year during November.  Today's new high reinforces that bullish breakout and confirms the recent rotation into smaller stocks.   That's normally a sign of confidence when investors start favoring smaller domestic-oriented stocks that are closely tied to the U.S.economy.  It's also worth noting that two of the biggest parts of the Russell 2000 are financials and healthcare which are both hitting new records today and playing a leading role in the small cap rally.

T. ROWE PRICE HITS NEW RECORD HIGH...Yesterday's message wrote about new financial leadership coming from asset managers; and showed a couple of stocks that recently achieved upside breakouts (Northern Trust and Blackrock).  Here's another one that looks even stronger.  The weekly bars in Chart 5 show T. Rowe Price (TROW) trading above its mid-2018 peak which puts the asset manager leader in record territory.  The histogram bars in the upper box show the TROW/SPX relative strength ratio also rising.  That mixture of rising absoluteand relative strength is usually a healthy combination.