Saturday, June 4, 2016

Weak Jobs Number; Worst In Six Years Rattles Market

At the end of the day, the weakest jobs number since 2010 didn't deter stock traders much, though the damage was more severe earlier in the session, another carbon copy of the previous two, with a deep drop at the open, followed by relentless pumping towards the positive.

While Friday's effort left much to be desired, it has now become all-too-obvious that there is no such thing as a fair and open market in US stocks, especially in the face of negative economic data. The federal government and agents of the Fed are adamant about painting a rosy picture of the economy, even though the metrics - especially manufacturing and non-farm payrolls this week - are using a strikingly different palette.

The 38,000 new jobs created in May, as reported by the BLS, was miles below the consensus estimate of 164,000 and gives the Fed much more thinking material as concerns a rate hike, which now appears to be off the table for June, at the very least.

What the number suggests is that despite all the howls from the president, his advisors and others on TV, the economy is in a precarious state, not one in which overheating is even a remote possibility. This would be no time to raise interest rates.

While stocks held their own during a tumultuous week, Friday saw gold and silver rally back, perhaps an indication that all is really not well in the kingdom of Obama.

On The Week:
Dow: -66.16, (-0.37%)
S&P 500: +0.07 (0.00)
NASDAQ: +9.01 (+0.18)

For the Day:
S&P 500: 2,099.13, -6.13 (0.29%)
Dow: 17,807.06, -31.50 (0.18%)
NASDAQ: 4,942.52, -28.85 (0.58%)

Crude Oil 48.90 -0.55% Gold 1,246.50 +2.80% EUR/USD 1.1366 0.00% 10-Yr Bond 1.70 -5.91% Corn 418.25 +0.72% Copper 2.12 +2.42% Silver 16.44 +2.59% Natural Gas 2.76 -0.54% Russell 2000 1,164.14 -0.55% VIX 13.47 -1.17% BATS 1000 20,677.17 0.00% GBP/USD 1.4515 0.00% USD/JPY 106.5450 0.00%

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