Small Business
I will edit the blog later to discuss how our SMB and other
SMBs are migrating to hiring only part-time.
And it is not only because of ObamaCare.
Summary:
·
Yesterday -
Well the market was weird yesterday before the release of the FOMC
minutes. As in the plan, the market
opened up, but did not stay there.
Across the USA equity market the price dropped. Then it rose.
I suspect that was a tough day for most retail day-traders of ETF
indexes or the futures market. Then the
FOMC minutes. The market took off to the
upside, and then collapsed. I suspect
(but cannot prove) that retail traders did not fair well.
·
Plan for today:
o
The market will open down, and stay down. I find it confusing to find the good news
(finally) and have the market drop so strongly.
o
Exxon beat estimates, and most of the earnings
reported in the earning season have been good.
o
Positive news came in on employment as initial
claims saw a 32K rise exceeding (positively) expectations by a wide margin (in
the context of things). This is the
lowest number of initial claims in 8 years.
What may be more problematic is the Employment Cost Index jumped .7% -
the largest rise since September 2008.
o
Banco Espirit Santo is causing equity price
problems in Europe which helps to explain why the market is down in Europe
(falling over to the opening in NY). FUD
is everywhere about Banco as Goldman Sachs licks it wounds over investing last
week.
o
Nothing new from the Federal Reserve in my
opinion. They will continue tapering and
read the tea-leaves (of course I mean the data). The labor reports are going to put pressure on
the Federal Reserve as labor rises, so does the threat of runaway inflation.
o
Today: Open down, and look for price to try to
close the gap after NY opens. The market
could go either way, but the scenario that makes the most sense is for
long-term investors to wait to buy or sell as the market digests the FOMC
policy and the European Central Bank actions (along with the building crises in
France).
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