(As of 7:12 am pacific)
Yesterday’s large market
losses were blamed on election results, but it was the emergence of the ‘fiscal
cliff’ as a major economic obstacle that accelerated those losses as the day
wore on. Boeing announced facilities
closures and a layoff of 30% of its executives in its defense segment. That story brought emphasis to the coming
large cuts in the defense budget on Jan 1, 2013. Today it appears that we are in a recovery
mode, but it may also be just a ‘dead cat’ bounce. As the day wears on we will see if the
negative momentum has been broken. The
US dollar is mixed today and most commodities are near the unchanged line
including gold and oil. News was good
out of Europe, while Japan reported negative economic data. US economic data has generally been good
indicating a mild economic recovery but not good enough to weather the storm
that will be created by falling off the fiscal cliff.
