Everything went wrong that could go wrong for stocks, which is why the dow plunged 225 points. S p plummeted 1. 43 . The nasdaq nosedived. To understand what triggers a selloff of this magnitude, you have to recognize that this market has multiple inputs and at times, these inputs flash bright red. Today was, indeed, a bright red day. Lets go through the information that the market uses to determine prices on any given day, because i want you on the same page as me, understanding this stuff. First is what we call the macro, thats broad sets of Economic Data that trigger reaction of the stockmarket and the much bigger bond market. On thursday at 8 30, we get those jobless claims. They were the lowest in six years. Not so fast. Its good for the economy. But its not necessarily good for the stock market. What happens when we get really good macro news like these jobless rates . Immediately, Interest Rates go higher. You got to pay more to borrow money when things are improving. Interest r
Higher. Dow gaining 199 points. S p falling 1. 12 and the nasdaq climbing 0. 73 . Stocks had been going down for five days in the expectation that Interest Rates had to rise, because there would be such a huge burst of hiring. Bond investors had been selling down their holdings, driving rates higher, because they thought growth was too robust. Instead we got a cinderella Payroll Employment number this morning that gave people a reason to stop selling bonds and to start buy, buy, buy stocks, which had been dropping all week. Its a Pretty Amazing thing to watch. The same stocks that have been hammered going into the jobs report spring back to life. The banks, industrials, housingrelated names, the Consumer Product stocks. Its almost as if they were all priced to a huge bond selloff which wouldve driven rates up, and when they didnt happen, we put the labor report under the category i always tell you about. The big bad event category that is now behind us in the rearview mirror. And this
Woman and will be gms first female ceo ever. I like the fact that she did a lot of what al mulally did, shes rationalizing production, thats important when you have gm, a lot of brands, make a lot of different cars. One of the thing great about the Great American manufacturing companies, they rapidly realized you have to make the same thing in europe, same thing in asia, same thing in the United States, nobodys that good to have that many fractured brands. She was the one quoted as saying gm, no more crappy cars. Thats a good mantra. Right. Certainly ackermans tenure has been a successful one. Yeah. When she takes over, not clear at this point. At least i havent heard it in the various news reports. I dont know if its immediate or is it timed to coincide with the governments announcement yesterday . I imagine so. This is the beginning of what could be a big dividend cycle. Gm has done so many right things. They have such momentum around the globe, in china, in the United States, europe
Nasdaq climbing after a week of playing tahi teeter totter. Are we done going up . Maybe number but i think the market likes leadership and right now, its gotten very hard to find new leaders. Lets get right to it. Start with tech. You search through the once huge group of the s p 500, you know with the white flag that went out by blackberry and the analysts declined in dell sales symbolizing pcs, you simply dont have that much to cheer about. Save one small section, which is telecom spending. They badly need to upgrade, tmobile, sprint, at t, verizon, there simply arent enough telco tax, to get the averages going, we need that group. Instead, there is intel, microsoft, or cam, ibm, hewlett packard. Tales of sell, sell, sell, all seem played out, dormant. Comatose. Apple and likos unfairly viewed as the same old, sail old, without now knowing about it. The peaking of samsung, there has been a huge propensity to say smartphones and tabments are played out like the desktop and laptop. No
Trish making the comment we are off the highs on the s p 500. Not much off the highs. Problem, still waiting on a deal out of washington. Why it is upstand 1200. It is the last price on gold. Also, a bit in crude oil. That is a sixweek high. Onto the big three. Julie hyman keeping an eye on them for us. The first of these is an etf. A spider etf. I wanted to check it because the volcker rule is being approved. Expected tors approve it by the end of the day. Talking with chris whalen about what it means for the bank. I have been preparing for this day for quite some time. Gilead sciences one of the worst performers in the s p 500. Hepatitis c drug they are preparing to come to the market. An executive says it is going to spark a drug war among hepatitis c drug makers. Finally, starbucks down after an analyst said that samestore sales may be slowing in the u. S. To around six percent from around eight percent the prior order. In. Rra is ackerson is out. She has been groomed for this role