Wow, so we just printed 69,000 while the street was looking for 150,000 out of the NFP jobs report and last month was revised down, while China had a sub-par PMI reporting of 50.4 this morning, things aren’t looking pretty. The Dow drops 200+ and the S&P breaks the previous low on the jobs news and we have a strong dollar, not great GDP growth from yesterday, weak jobs numbers equities aren’t doing anybody any favors, and new all-time low in 10-year yields. The June FOMC meeting should be really interesting pertaining to QE 3, all the domino’s are practically inline for add’l easing.
Junk bonds had a rough day yesterday, putting the junk-investment grade ratio to a new low, diverting from equities.Which makes today’s nearly 2% (pre-market as I write this) drop not a HUGE surprise, outside of the weak economic data.
I looked yesterday morning at the spike in selling volume and discussed how the line in the sand was the 360-MA, well that moving average wasn’t able to hold up to the economic pressures so far this morning. We still have ISM data at 10am, so the fun isn’t over yet!
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