Stock markets around the world got rocked today.
First the scoreboard:
Dow: 14,960, -76.4 pts, -0.5%
S&P 500: 1,631, -9.0 pts, -0.5%
NASDAQ: 3,445, -20.1 pts, -0.5%
And now the top stories:
- The global market sell-off started in Japan after Prime Minister Shinzo Abe unveiled his latest plan — dubbed the “third arrow” — to get the economy of the ground. “Abe shot an arrow in the air,” said UBS’s Art Cashin. “It may have hit him in the foot.” Japan’s Nikkei plunged nearly 4% reflecting the market’s disappointment.
- It’s jobs week in America, and things aren’t looking to hot. This morning, ADP estimated that private U.S. companies added just 135,000 jobs in May, which was below the 165,000 forecasted by economists. The “odds of a strong report on Friday have just gone down considerably,” said economist Ian Shepherdson referring to the upcoming official jobs report from the Bureau of labour Statistics.
- But according to Gallup, job creation activity is at its highest level since April 2008.
- In another report, we learned that unit labour costs plunged by a stunning 4.3% in Q1, which was much worse than the modest gain estimated by economists.
- In other bad news, factory orders climbed by just 1.0% in April, falling short of economists’ expectation for a 1.5% gain.
- Today’s sell-off puts the S&P 500 just under 5% below its May 22 high.
- “From our perspective, very little analysis, process and common sense is being applied by many investors when making investment decisions at current levels. In fact, we are getting the sense that too many investors are currently expecting higher stock prices tomorrow just because they were higher today.”
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