Wednesday, June 01, 2011

Market comments for June 2nd UPDATED

The market on Wednesday finally dropped given the recent poor economic news. I have said that I thought there would be lower highs and lower lows going forward and today we seemed to affirm that prediction with a drop of 288 points on the Dow. Below, I have added a 3 month chart of the Dow, which shows new lower lows, signified by Blue arrows and new lower lows, signified in Red arrows.

Thursday will show the release of Initial Jobless Claims, Productivity, Factory Orders and Unit Labor Costs. On Friday the Unemployment rate for May will be released as well.

UPDATED June 2nd at 5:38am PST

Initial Jobless Claims for the week of May 28th came in higher than expected again for the 4th straight week at 422K, while expectations were for only 400K. It seems that it is going to take a long time before we get back below 400K as were were over a month ago. I would expect this data will show that the Unemployment rate ticks up for May to possibly 9.1%. If it does this, that would be the second month in a row where the rate has increased again.

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