Courtesy of John Nyaradi
The day of reckoning has finally come.
Today the markets ended their plummet to the bottom, as investors perhaps realized that the world is still in fact spinning…or at least it appears that way.
Assuming we are all still alive and able to feed our families, one might be able to take a quick sigh of relieve as President Obama and Congress finally passed a debt deal, staving off perhaps what would have been the worse self- inflicted wound in American History.
However, I would not breathe too much relief, as the next turn in the road could be worse. Although making it to August 3rd was a miracle, this day brought along some very bad news coupled with kernels of good news. Let’s do the good news first:
- As mentioned earlier, the stock market ended its worst ever losing streak since the 2008 lows
- ADP Employment Report: the private sector job count is up 114,000 jobs for July
- Moody’s did not rescind its “AAA” rating of the US economy today…
Bad News:
- We now have a committee to fix our debt ceiling woes, with no likely way to solve this mess
- Italy and Spain are still face potential collapse, among other things
- The dollar is likely to continue to plummet in value as more dollars are borrowed
- Companies continue to lay off thousands of workers
- The US might be heading to a double dip recession…or, as some would say, we never left the first one
- US consumer spending fell for the first time since 2009
We have made it to August 3rd, but I feel this is only the beginning of the long road back to a tidier government bank account, and, more importantly, an economy that employs Americans.
Global Market Summary:
Dow Jones Industrials (DIA): +.14; +0.12%
S&P 500 (SPY): +0.2; +0.16%
NASDAQ (QQQ) 0.0, 0.0%
Russell 2000 (IWM): -0.02, -0.03%
Tomorrow’s Action:
GM is planning to post its 2nd quarter results, this could be another indicator of a recovery??
I would highly recommend only taking a short breath of relief. Although we did not fall off the cliff, the ropes holding us are frayed, at best.
Have a wonderful evening,
John
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