(as of 7:10 AM PST)
Today's shocking jobs report sent the Dow down by triple digits and other indices are following. New jobs created was a meager 38,000 while analysts had projected 160,000. In addition, prior month projections for both April and May were revised downward significantly, indicating that the US recovery was not near as vibrant as previously thought. Other woeful economic data included a decline in the ISM services number, although the reading did not show a slippage into contractionary territory, and an increase in the balance of payments deficit. Most investment sectors are reacting to the overall dismal numbers. The US dollar is falling heavily on currency markets, interest rate yields are falling while commodities are generally up across the board, with gold and silver sporting gains of over 2%, breaking their down cycle that we have seen over the past few weeks. One positive nugget that investors might see in the weakness is that the Federal Reserve is much less likely to raise interest rates this month in light of the economic weakness. But it will not likely stem the downward tide that we are seeing at the beginning of what could be a long day for market bulls.
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