Friday, January 4, 2008

Stocks down after weak jobs report

Stocks fell sharply after a disappointing jobs report. Dow was down 160, decliners outnumbered advancers about 5-1, 490 new 52 week lows & NAZ dropped 65 . These declines followed down markets overseas. Weak job growth & higher unemployment rates disappointed investors. Dow is below 13K, it will probably test the lows in recent months. The Treasury bond has been very strong sending it's yield to 3.84%. Just a few weeks ago the yield was 40 basis points higher but investors bid up it's price. Gold is at a record, around $870. Frightened money flows to treasuries & gold.

Of the ones I watch closely, banks & REIT's pulled back. Even the MLPs backed up from recent strength, remaining in their 310-290 trading range. This market looks very weak, i.e. not too many friends out there.

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