Proving that the ADP jobs report is often way off, today the government announced only 80,000 jobs were created in June (ADP number was 176,000). The unemployment rate did hold steady though at 8.2%. Economists had been looking for 95,000 jobs created in June. The one upside to the report is that this could force the FED‘s hand in rolling out another round of QE… which would be QE3.
Markets did pare some losses near the end of the day on rumors of additional bond buying by the Federal Reserve due to the jobs report.
Tech and Industrials faired the worst today along with commodities such as Oil, Gold, and Copper.
Earnings season starts next week, and most companies have already guided down. Key to all earnings reports is their outlook for sales over the next two quarters.
Best to be prepared for more surprise bad economic reports going forward. While Tech stocks currently look to be oversold, traditionally August is the worst performing months for the Tech sector. Be patient and wait to double down on Tech in the beginning of August.
The DOW (INDU) closed down 124 points to 12,772.47. The S&P 500 (SPX) closed down 13 points to 1,354.68. And the Nasdaq (COMP) closed down 39 points to 2,937.33.
Oil fell $2.77 to close at $84.45 a barrel. Iran, apparently trying to fool someone, repainted their shipping tankers and have parked them having no one to be able to sell their crude to due to sanctions.
Gold fell $30.50 to close at $1,578.90 an ounce.
The 10-Year Note rose today pushing yields down to 1.56%.
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.