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JOLTS — What you need to know in markets on Wednesday

One of Fed chair Janet Yellen’s favorite economic indicators will highlight Wednesday’s data just a week before the Fed’s next policy announcement.

The job openings and labor turnover survey, or JOLTS report, is due out at 10 a.m. ET and is expected to show there were about 5.45 million jobs open in the US in October.

This report also gives us readings on how many people are quitting jobs, providing an overview of how dynamic the US labor market is and serving as a great complement to the more closely watched monthly jobs report.

On Tuesday, the Dow hit a record high for the 11th time since the presidential election, as markets head towards the end of December, traditionally one of the strongest times for stock returns.

The ‘great unwind’ update

It’s still happening.

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Last month, we noted that strategists at Deutsche Bank said Donald Trump’s election could trigger the “great unwind” in markets. And while this sounds very scary, this is really just another name for what was, at one time, the hot meme in markets: the great rotation of money out of bonds and into stocks.

“Overall developed market equity funds extended their inflows into the fourth straight week since the US election, albeit on the weakest pace, as commitments to U.S. equity funds slowed amid the Thanksgiving holiday,” Deutsche Bank’s Andreas Bruckner wrote in a note to clients out Tuesday.

“Only DM bond funds stayed in character, adding another round of sizeable losses to the mix, and as such closing in on the cumulative outflow level last observed in December last year. Yet we believe that, if everything goes well, and a fiscal-driven rebound in US growth was to come and lead to more Fed tightening than otherwise had been the case, the rotation into DM equities away from bonds should flourish.” (Emphasis added.)

Bruckner added that a sustained rise in the US 10-year Treasury yield to 2.5% could push up to $250 billion from developed-market bonds into developed-market stocks. On Tuesday, the 10-year yield was sitting near 2.39%.

Stock investors, at this point, seem mostly focused on what happens on taxes next year. A lower tax rate could be a boost for certain valuation measures. While a cash repatriation holiday could lead to a surge of stock buybacks.

But at least based on the work of one team of analysts, more inflation or a more optimistic view on the US economy could see investor flows favor stocks. And potentially push prices higher.

Further reading

PRESENTING: Yahoo Finance’s chart of the year (Yahoo Finance)

The three things Goldman’s equity team is worried about in 2017 (Business Insider)

New York’s tallest luxury building is offering millions in discounts (Bloomberg)

Matt Levine on the Supreme Court’s insider trading ruling (Bloomberg View)

Uber Is Staggeringly Unprofitable, Is the Industry’s High Cost Producer, Cannot “Grow Into Profitability,” and Has no Meaningful Competitive Advantages (Naked Capitalism)

Toll Brothers: “In FY 2016, approximately 22% of our settlements included one primary buyer thirty-five years of age or under.” (Toll Brothers)

Myles Udland is a writer at Yahoo Finance.

Read more from Myles here; follow him on Twitter @MylesUdland