Well once again we get 1st time jobless claims that are less than expected–up a few thousand from last week. Additionally ongoing claims continue on a downward path. Yesterday ADP numbers on employment showed a softening in the labor market. Who do you believe–I believe no single report–I need weeks and months worth of data.
Interest rates have backed off nicely from the 4.80’s% and now trading at 4.73%–this jobs report tomorrow is fairly critical to the level the 10 year treasury will trade at tomorrow and into next week—don’t forget we have a ‘holiday’ on Monday–no bond market trading.
Yesterday I had nice bounces in the portfolios–although today I have given back 1/2 of that bounce. So we await the jobs report and see what kind of action we get off of the report.
Well multiple signs that this economy is cracking. It certainly will crack. Just a question of when and how bad. Treasuries are the only cure for this disease IMHO.
After a big drop, there is almost always a little “dead cat bounce”.