Market Digest \u2013 Week Ending 12\/7\r\n\r\nStocks remained in a narrow band as Fiscal Cliff negotiations again went nowhere. Friday\u2019s jobs report was better than expected, with the headline unemployment number dropping to 7.7%. Apple, America\u2019s favorite stock, fell 8.9% this week as China Mobile announced it will carry Nokia\u2019s new Lumina smartphone and an analyst report predicted share loss in tablets. Gold fell.\r\n\r\nWeekly Returns\r\n\r\nS&P 500: 1,418 (+0.1%)\r\n\r\nMSCI EAFE: (+0.8%)\r\n\r\nUS 10 Year Treasury Yield: 1.63% (+0.01%)\r\n\r\nGold: $1,704 (-0.6%)\r\n\r\nUSD\/EUR: $1.293 (-0.6%)\r\n\r\nMajor Events\r\n\r\n \tMonday \u2013 Republicans countered with their own deficit plan, proposing only half of the tax revenue as Obama.\r\n \tMonday \u2013 The ISM factory index showed US manufacturing shrank in November, falling short of expectations.\r\n \tTuesday \u2013 Obama quickly rejected the Republican deficit proposal for not including enough revenue from tax increases on high-income earners.\r\n \tTuesday \u2013 Uniting against Egyptian President Morsi\u2019s recent power grab, protestors in Egypt pushed through cordons and riot police to rally directly outside the Presidential Palace.\r\n \tWednesday \u2013 Contrasting the negative manufacturing report on Monday, the ISM non-manufacturing index showed US services unexpectedly increased in November.\r\n \tThursday \u2013 The European Central Bank reduced its economic growth forecast, with President Mario Draghi not expecting a recovery until the second half of 2013.\r\n \tFriday\u00a0\u2013 US nonfarm payrolls increased ahead of expectations, pushing the unemployment rate to 7.7%.\r\n\r\nOur Take\r\n\r\nFiscal Cliff concerns largely overshadowed Friday\u2019s jobs report, but it was an important one. The economy added 146,000 jobs compared to an expectation of around 85,000. Most of the positive surprise came from the private sector, proving Fiscal Cliff concerns are not having an outsized impact on hiring decisions.\r\n\r\nApple\u2019s mostly symbolic announcement that it will manufacture some Macs in the US provides a nice example of how the global economy is always changing. It is a small clue that the US may once again return as the envy of the world.\r\n\r\nChina\u2019s amazing growth was fuelled by cheap manufacturing labor. Today, China faces higher labor costs and competition from increasingly sophisticated manufacturing machinery. Europe is sinking deeper into recession and has massive structural problems. The US economy is not roaring, but it is growing and appears to have some momentum. An improving housing market, resurgent manufacturing sector, increasing energy production, and technology leadership are all good things for the US looking ahead.\r\n\r\nIf our elected representatives could look beyond their petty bickering and pass legislation on the portions of the fiscal cliff where they already agree, 2013 could be a very promising year.