Long Hot Slow Summer: ISM Services Index drops

Fade the rally! Tell me more about this mythical ‘recovery summer’. Pfft. GOLD is dropping, like a stone?!, down another $14. Buy the preccccious….


The June ISM Non-manufacturing index was at 53.8%, down from 55.4% in May – and below expectations of 55. The employment index showed contraction in June at 49.7%…….

July 6, 2010. Tags: , , , , . Economy, Finance, Obama Administration, Politics, Popular Culture, Taxes, Unemployment Statistics, Wall St. Comments off.

Market Update: DOW pops 112 on ISM >50 & Goldman Sachs big bank upgrade, Gold hits $1017…

See the zombie bull market ride! but watch that GOLD it is back on a tear as the US Dollar sinks…Bassey time!

DOW closes up 112.08 to 9599.75; S&P up 15.25 to 1040.46 and NAS up 20.04 to 2068.15

ISM edged over 50 today.


Large U.S. banks’ normalized earnings have surged 39 percent this cycle mostly on long-term accretive deals, but banks’ share prices do not fully reflect their earnings power, Goldman Sachs said as it upgraded big banks to “attractive” from “neutral.”..

I am with Meredith Whitney on the big banks and the second housing drop about to happen…what else might have caught traders’ eye today…how about the TAX CUT talk from the WH?

John ‘Obama mouthpiece’ Harwood:

…Publicly, White House aides and Congressional leaders have responded with incessant attempts to highlight benefits from the $787 billion economic stimulus package they enacted earlier this year. Privately, Mr. Obama’s economic advisers are sifting options for a new package of tax cuts and other job creation measures to be unveiled in next year’s State of the Union address — or earlier if pressure for action becomes irresistible….

…even Mr. Obama’s economic team now concedes that unemployment, which they once hoped to keep from exceeding 8 percent, will get worse through the end of the year. One outside economist, Mark Zandi, predicts the economy will shed 750,000 more jobs over the next six months, with unemployment peaking at 10.5 percent in June….

Democrats are considering other steps in addition to the extension of unemployment benefits now moving through Congress.Mr. Zandi recommends that the administration extend existing measures, like a tax credit for homebuyers and accelerated depreciation for businesses. Yet even if those steps succeed economically, the political question is how quickly they could help Democratic candidates….

And lookee at GOLD, up 13.5 to $1017.80 today as the US Dollar fell! BofA/Merrill calling for 1500:

Gold prices will hit $1,500 an ounce in 2011 when oil prices move back above $100 a barrel as emerging market growth creates shortages, Bank of America Merrill Lynch said on Monday. “For the world economy to resume growth of 5 percent, commodity supplies must expand by a similar rate, ” said Francisco Blanch, head of global commodity research at the U.S. bank. “With emerging markets likely to lead the global recovery, too much money chasing too few barrels could bring another spike in oil prices.”…

October 5, 2009. Tags: , , , , , , , , , . Economy, Finance, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. Comments off.

Update: DOW closes down 203-ISM well below expectations, 30 yr bond hits 4.00%, pending home sales rocket -Market Mover Thursday: Weekly Jobless claims rise..

Update: 4:54 pm EST: DOW closes down 203 to 9509.28; S & P down 27.23 to 1029.85, NAS down 64.94 to 2057.48


Update 1:22pm EST:

DOW now down 176.85 to 9535.43

S & P off 23.29 to 1033.79

NAS down 58.05 to 2066.37

30 yr now 3.95%!

10 yr 3.19%

Update: ISM well below expectations 52.6, that is a DROP from August reading of 52.9, thus delta going wrong way…DOW now down 82 to 9630…

but pending home sales JUMP (IMO off the pending END to the homebuyer tax credit, ends Nov 30th) markets ricocheting off the data…

Pending Home Sales rocket, NAR says it is due to paperwork backlogs wha?
Okay NAR says pending home sales UP but NOT NECESSARILY CLOSING, ahh funding and appraisal disputes abound, NAR says sales up on short sales pending for ‘complex appraisal rules’.:

up 16% in the West
up 8.2% in the NorthEast
up 3.1% in Midwest
up 0.8% in the South

wall_st_bear_small‘unexpectedly’ (Only to the Hopium Smokin’ KoolAid Drinkin’ Pundits is this ‘unexpected’)

This is the weekly jobs number, the big one, monthly August jobs data will be released tomorrow.

Breaking on CNBC-

Weekly jobless claims (week ending 09/26) rise 17,000 to 551,000

Personal spending up 0.3%– 1.3% all Clunkers

Initial claims for state unemployment insurance rose to a seasonally adjusted 551,000 in the week ending Sept. 26 from a revised 534,000 in the previous week. Analysts polled by\ Reuters were expecting claims of 530,000, which would have been unchanged from the previously reported figure…

..Government data on Wednesday showed spending dropped at a 0.9 percent annual rate in the second quarter after rising 0.6 percent in the January-March period…

Jim Rogers joins MiM’s bandwagon in a call we are  ‘facing retro 70s inflation’

The US faces high inflation because of the weak dollar and the Federal Reserve’s policy of printing money to counter the effects of the crisis, legendary investor Jim Rogers told CNBC Thursday. Price rises in the US are already steeper than the inflation rate reported by the government, Rogers added.”There’s no question the US is vulnerable to hyperinflation down the road or certainly the inflation we saw in the 1970s, I would expect that to come back in the foreseeable future, certainly in the next few years,” he said.

“The true inflation rate in America? It’s certainly at least 6 or 7 percent, the US government lies about it, as you know, everybody who shops knows that prices are up, everybody except the US government, and I wish we knew where they shopped so we can shop there too and get good prices.”

Rogers repeated his view that the Fed’s quantitative easing program is “debasing the currency” and said he was “extremely worried” about the fate of the dollar over the long term…..

Waiting for September ISM release..

October 1, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Labor Department, Obama Administration, Politics, Unemployment Statistics, Wall St. Comments off.

Market Update: Sell off- DOW drops 188…


The economics 101 pundits on CNBC had good economic data to spin today with the ISM and pending home sales (but when you dig things aren’t ‘there’ yet), but the markets seem to have figured out yesterday following the China selloff Sunday night, that only the American consumer is going to get us out of this and the American consumer is pixxed off, nervous about their job, or does not have a job, and is waiting to see what Team TOTUS will frak with next…IOW not spending loads of dough anytime soon, thus preventing an inventory buildup which would lead to job creation..

Reality Bites

DOW down 188.56 to 9307.72

S& P down 22.75 to 997.87 (breaking the 1000 level)

NAS down 40.85 to 1968.21

10 yr is at 3.37

GOLD up 4.4 to $957.90

US Dollar rallied -Oil dropped 1.86 to 68.10

PS Cash for Clunkers CLUNKED! GM and Chrysler saw sales DROP!!!! Only FORD did well, and even they less than expected!

September 1, 2009. Tags: , , , . Economy, Finance, Politics, Unemployment Statistics, Wall St. Comments off.

Monday Markets Open

Construction Spending and the ISM Manufacturing number are out at 10:00am EST.. (my eyes are all for Hillary and the National Security Team being announced at 10:40am EST today in Chicago….)

via BloombergMonday: The ISM manufacturing report has already broken down to recessionary levels. Further declines along with declines in prices paid could raise concern over the depth of the manufacturing recession as well as the risk of deflation.


December 1, 2008. Tags: , , . Economy, Finance, Obama Administration, Politics, Wall St. Comments off.

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