Last week our illustrious government representatives were scurrying to get a debt ceiling deal done to avoid a negative market reaction on Sunday night. So they got a 'deal' done, and guess what? the markets tanked anyway. (Stocks: Worst week since financial crisis). The DOW dropped over 500 points the day after the 'deal' was done!
Also on Friday we got a better than expected jobs report, but the market continued its downtrend. Next week we'll see more turmoil in the markets as we deal with this US debt downgrade.
This past 2 weeks we have seen a fast drop in the marketNew all time highs this week: ?
Drops: BRCD, DNDN, MRO, PMI
New unemployment claims came in right at 400,000 (chart).
This week, two more banks were shut down by the FDIC! (list).
Next week: (Economic reports link). Fed meeting next week. The US debt downgrade will probably be the focus of next week's market action however.
Earnings reports continue to come in next week to include:
Cisco, Disney, J C Penny,
Market commentary: The market tested the 'lows' -(last week's commentary), and went even lower, with huge volume! This is ugly. I'm sure we'll get a bounce, but the longer term picture just changed for the worse. Looks like we are headed in bear market territory now. Use any bounce to get out of long positions or to establish a hedge.
This weeks charts:
SPY -dropping like a rock!
SPX -we might eventually make it all the way down to the 1025 area!
DNDN -dropped like a rock
BAC -no relief in sight
BRCD -trouble
Commodities (charts):
Oil prices saw a huge drop, closing around $86.88 per barrel.
Natural Gas was down, closing near $3.94
Gold was up again, closing at $1651
The 30 year Bond was up again, closing near $132.2. Is this the top in bonds?
The US Dollar was up, closing near 74.60
News:
Stocks: Worst week since financial crisis
Sort Through the Wreckage of a 500-point Down Day
Treasuries: 'It's pretty grim'
Fannie Mae loss widens; asking taxpayers for $2.8B
Rhode Island city files for bankruptcy
Chronicle of gloom: Economic indicators at lows
S&P downgrades U.S. credit rating
S&P's $2 Trillion Error Didn't Change Rating Cut Decision
S&P said to back away from U.S. downgrade
China Tells US 'Good Old Days' of Borrowing Over
Jobs recovery still weak
Jobs report: A pig in lipstick
Mass Layoffs Rise
Food stamp use rises to record 45.8 million
Oil near $86 as outlook for crude demand dims
New Fee to Bank Cash
Massive HSBC Layoffs Only the Beginning
Switzerland Desperately Tries To Control Its Currency
Bank of Japan Adds Monetary Stimulus, Supporting Effort to Cool Yen Gains
Asian Stocks Tumble 11% From May High on Economic Growth Concern
Carlos Slim Loses $6.7 Billion in a Week
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