Plus, tesla, speeding off to, yes, another record high today what the company said about demand that sent shares into overdrive. Later on, break out the sparklers. Were ushering in the fourth of july with some allamerican stock picks. We will start with 4. 8 million reasons to rally thats because thats how many jobs america created for the economy last month, blowing away economist expectations wall street rallied on the report with the s p 500 finishing the day up about. 5 Something Interesting happened in the market today that we dont often see. We had stocks up, bonds up, the u. S. Dollar up, gold up. So, tim, whats up with todays Market Action . Ill talk about what stocks need to move higher. The macro, again, its not necessarily something to do cartwheels in absolute terms, but in relative terms to where we are, weve taken back onethird of jobs lost we had pmis around the world better this week, housing numbers that were better bonds should be slightly selling off here except for
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
Wrong that could go wrong for stocks, which is why the dow plunged 225 points. S p plummeted to 1. 43 . The nasdaq knowsdived. To understand what triggers a selloff of this magnitude, you have to recognize this market has multiple enputs 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 sense of Economic Data that trig ter reaction of the stockmarket and the much bonger 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. What happens when we get good macro news like these jobless rates . Immediately, Interest Rates go higher. You have to borrow more money when things are improving . Interest rates reached a high t. Key governme
Including due possibility, freeportmcmoran, dow chemicals and then the spider select materials sector, that down about 3 . Top holdings there, monsanto, dupont. David liz, lets take a look at that index you were talking about, the volatility index. When things go south, as they have, this usually goes up. This is not a stock, this is an index, but there are stocks that are linked to this if you think things are going to continue to go south. This was just down below 15 not long ago, it jumped about 13 today, its up to almost 19 right now. Again, when it got down below 15, people began to wonder, jeez, how low can this thing go . Apparently, it reached its limit at that point. Liz you could argue it was dupont and 3m with earnings reports that people didnt embrace, but todays selloff theoretically started in europe as worries mounted about spains ability to overcome its debt troubles. Again you see that the ftse 100 down about a percent, you saw the dax down 14 Percentage Points as well
nasdaq, up 30 points today, almost 1% there as well. and the s&p 500 tonight, up 10.5 points, two-thirds of 1% on the upside. the summer kicking off with a sizzling side on wall street. josh lipton is in the middle of it, talking about where stocks are up all day. another day, another record for the dow. as you pointed out, we did close off session highs. have been up about 218. we still, though, rack up a triple-digit gain, up about 107 points at the close. positive economic data on home prices, on consumer confidence. you hit a post-recession high. and some traders down here telling me this morning, why fight the tuesday. as you and bill were pointing out now, 20, 20 consecutive tuesdays of gains. in the s&p 500, what worked today, those cyclical sectors, those economically sensitive sectors. that has been the thing, it s financials, it s energy, and it s materials. what did not work today were those defensive sectors, telecom and utilities. in fact, dow utilities closed