D&D Note (7-5-2012)
The big money is all on vacation creating no volume, leaving just day traders and algorithms moving the market. And everyone is waiting for the jobs number to be released tomorrow morning. If the jobs report comes in sub 100k it’ll be bad, if it can come in at 106k then it’ll be ok. For a good number we would have to see something above 150k.
Even if we get a strong jobs number the irony will be that the unemployment number will most likely go up due to more people coming back into the job market and recent college grads entering the market.
The ADP report (released by the payroll-processing company always prior to the government report) did exceed economists expectations with a reading of 176,000 jobs in June. Keep in mind the ADP report is often very off from what the government releases.
Markets did get some good news yesterday with both the European Central Bank (ECB) and the People’s Bank of China cut rates. However no new additional stimulus was announced – i.e. no actual cash to be injected into the markets. The ECB lowered their rate 0.75% and the People’s Bank cut to 6%.
The Bank of England did announce additional stimulus with additional asset purchases to the tune of $78.1 billion.
The recent central bank action is beginning to paint the picture of yet more quantitative easy to come this year.
The DOW (INDU) lost 47 points, the S&P 500 (SPX) lost 6 points, and the Nasdaq (COMP) finished the day UNCH. What kept the Nasdaq unchanged was tech darling Apple (AAPL) which has the heaviest weight in the index and was up 1.76% to close at $609.94 a share.
Oil fell 44 cents to close at $87.22 a barrel.
Gold fell $12.40 to $1,609.40 an ounce.
The 10-Year Note rose on the day pushing yields down to 1.60%.
Really the biggest news of the day was info released yesterday that CERN has possibly found the “God Particle” which is the Higgs Boson. If this is true the entire scientific landscape and knowledge will be literally re-written and will have huge implications for the business world and humanity. However, it will still take months to verify the results and many more months for Molecular Manufacturing to start. But once it does many people point to this point in humanity as the singularity.
The coming fiscal cliff can be fixed by the policies outlined within the D&D Investments “Comprehensive Long-Term American Deficit Solution” written by D&D trading partner Del Lienemann Jr.
The full paper can be read by clicking this link HERE.
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