Only 69,000 jobs where created in May falling far short of the expected 150,000. Unemployment rose to 8.2%, the first time its gone up since last June. Revisions to the March and April reports saw 49,000 fewer jobs had been created. The US should though avoid slipping back into recession. However we could still see more downside to this now deep correction and certainly continued volatility.
The 10-Year Note fell below 1.5% for the first time ever see the yield to settle at 1.46%.
Fear has wrapped its hands around the markets. The European sovereign debt crisis continues to only get worse and nowhere near better. China and India continue to lag in economic growth. And the American Fiscal Cliff (which D&D will be addressing in detail next week) remains on the horizon.
Next week will be dominated by to QE or to not QE. The only thing that would have pushed the FED to print more money is if we got a bad jobs numbers today. The number today was not only bad but horrid.
The third week in June will tell us a lot about how the back half of 2012 will play out. That week we have both the Greek elections and the FOMC meeting.
All gains on the DOW for 2012 have now been erased for the year. All investors would be wise to be overweight in good ‘ol cash over the next month and only buy companies with strong balance sheets.
The DOW (INDU) fell 274.88 points, the S&P 500 (SPX) fell 32.29 points, and the Nasdaq (COMP) fell 79.86 points.