Daily Investment Interpretations
September 2, 2011
(Friday Night): The
bulls were run off the field today after the August jobs report showed
zero growth: U.S. economy adds zero jobs in August.
Composite fell 65.71
points (-2.58%) to
close at 2,480.33.
The Dow lost 253.31
at 11,240.26; the S&P 500 slid 30.45
to settle at 1,173.97. Oil rose to $88.78;
gold remained at 1,827: Gold settles modestly lower as dollar rises.
The VIX gained 2`points to 33.82.
Contributing to this month's dismal jobs report were 45,000 Verizon employees who were out on strike. Still, Recession or not, jobs report widely panned.
After this morning's commentary, Jobs report startles stocks, the State of the Markets technical analysis is entitled Technical Talk: The Dreaded Breakout Fakeout: "The bottom line to the current technical action is that this week's breakout above key resistance at 1205 has turned into a "breakout fakeout." So, with the indices now back in the range, we will have to resume the process of establishing support once again. We see the near-term support levels at 1180 being tested (so far successfully) today. Finally, remember that old support at 1205ish is once again new resistance." Note that the S&P 500 closed below the 1180 level at which State of the Markets said they would be short-term sellers. As last night's advice ran: "Basically, the idea is that it's still not safe to jump on the bulls' bandwagon."
Today's State of the Markets articles include:
UK Construction PMI Falls in August
Greece Won't Meet Deficit Targets in 2011
Nonfarm Payrolls Report: No Job Growth in August
Reports: FHFA Preparing To File Suit Against Big Banks
Shiller: It Will Be a Bumpy Ride, But Okay to Buy Stocks For Long Term
EC Approves Loan Installment for Ireland and Portugal
Rumor Mill: Goldman To Say QE3 Is A Go
Market watch says, If You Thought August Was Bad...
Other articles include:
Job report turns up heat on Fed to take action,
Labor secretary puts blame on debt-ceiling fight,
Jobless rate to remain atop 8% in 2012: White House,
Noted analyst: Dow 13,600, here we come, and
Tech job growth in India — and the U.S.
The noted analyst is Sam Eisenstadt, "the former research director at Value Line. Prior to his retirement in late 2009, Eisenstadt had spent 63 years at that firm. At the time, its flagship publication, the Value Line Investment Survey, was in first place for risk-adjusted performance over the three decades the Hulbert Financial Digest had been tracking advisory performance." (As you may have guessed, this article is Mark Hulbert's contribution to this Friday's news columns.)
And that about wraps up the week.