Pre-open:
June 6 (Bloomberg) -- The U.S. lost jobs in May for a fifth month and the unemployment rate rose by the most in more than two decades, signaling the world's largest economy is stalling.
Payrolls fell by 49,000, a smaller decline than forecast, after a 28,000 drop in April that was more than initially reported, the Labor Department said today in Washington. The jobless rate increased to 5.5 percent from 5 percent, the biggest jump since February 1986.
Even though it is better than the 60K forecast, obviously something even better was forecast (and priced in). The rate, though, is much higher than forecast (5.5 versus 5.1 expected). Furthermore, it looks bleak for next months report. My guess is we will also see more downside revisions. The word recession is back in the dictionary.
Bonds have a bid and it looks like once again the low 4% area finds takers, which is bearish for stocks. We could not make new highs with those yields yesterday and that was a red flag (something that bothered me all day).
ES is back below its 20 dma as I type and NQ topped out just under weekly R1. Watch NQ 2043.75 support. With oil back up above 131, the party hats are gone.
June 6 (Bloomberg) -- The U.S. lost jobs in May for a fifth month and the unemployment rate rose by the most in more than two decades, signaling the world's largest economy is stalling.
Payrolls fell by 49,000, a smaller decline than forecast, after a 28,000 drop in April that was more than initially reported, the Labor Department said today in Washington. The jobless rate increased to 5.5 percent from 5 percent, the biggest jump since February 1986.
Even though it is better than the 60K forecast, obviously something even better was forecast (and priced in). The rate, though, is much higher than forecast (5.5 versus 5.1 expected). Furthermore, it looks bleak for next months report. My guess is we will also see more downside revisions. The word recession is back in the dictionary.
Bonds have a bid and it looks like once again the low 4% area finds takers, which is bearish for stocks. We could not make new highs with those yields yesterday and that was a red flag (something that bothered me all day).
ES is back below its 20 dma as I type and NQ topped out just under weekly R1. Watch NQ 2043.75 support. With oil back up above 131, the party hats are gone.
This entry was posted
on Friday, June 06, 2008 at 6/06/2008 08:37:00 AM.
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