Jobless Claims Decline to 454,000

Weekly jobless claims fell by 21,000 over the previous week to 454,000 claims. Analysts had been expecting claims to fall more modestly to 460,000.

JP Morgan Stressed on EU Stress Tests

JP Morgan is voicing its doubts as to the integrity of the EU stress tests, viewing the 17% haircut on Greek debt as a joke. The firm believes that the haircuts across the board reflect an overly optimistic outlook: http://bit.ly/91fQol

Spain on Watch for Possible Downgrade: Moody’s

Moody’s has its eye on Spanish debt, putting the country’s credit rating on watch for a possible downgrade from AAA. The ratings agency noted that economic conditions have deteriorated. Of course, one might argue that the present rating is a joke, as are the ratings agencies in general.

ADP Jobs Report A Huge Disappointment

The private sector added 13,000 jobs in the US in June, according to a report published by ADP. Economists had expected the report to show 60,000 jobs added on the month. May data, on the other hand, was revised upward by 2,000 to 57,000 jobs added.

Consumers not so confident

Consumer confidence plummeted in June to a reading of 52.9 from 63.3. “Analysts” were expecting a more tamed decline to 62.8.

Bear Market for Retailers

Traders are betting that the consumer is dead, as retailers hit bear market territory. Going forward, retailers are sure to have company in the bear market camp…

Jobless Claims Fall to 457,000

Initial claims for unemployment benefits fell by 19,000 week over week to 457,000. As has been the case over the last several months, the range continues to fall between 425,000 to 475,000 new claims weekly. For the employment picture in the U.S. to improve, this range must be broken.

Volatily Expected in Final Hour of Trading

The final hour of trading today will likely be a volatile one, as investors digest a bearish FOMC statement and an ever-weakening housing market. Equities have already fallen from their unjustified highs following the FOMC statement and may have a long way to fall still.

Fed Offers a Bearish Outlook

The Fed has pointed out a number of key weaknesses with the US economy, though offered little information as to how those weaknesses will be fought. This is a sell the news statement — markets should decline from here. “Extended period” of low rates continues.

Equities, Risk Assets Quiet Ahead of FOMC

Equities markets and riskier assets have been quiet in afternoon trading, as investors await word from the FOMC as to the outlook for the global economy. Specifically, traders will look toward the rate statement for clues on the FOMC’s view of housing and unemployment as well as contagion risks from Europe. However, the statement will… Continue Reading