Premarket Live Market Commentary For 05-30-2012
The SP500 started out early this morning at 1316 after closing at 1313 yesterday and now resting at 1311. The financial reports were not all that good (see below) but overall didn’t seem to effect the premarket futures all that much. A flat opening is in the offering probably followed by weakness as the day wears on. The US30 as reported by Bloomberg is down 130 but the European markets are currently up.
Gold is at 1566, WTI oil is at 87.24 and Brent is at 103.29. Dr. Copper suffered a relapse yesterday trading today at 3.38 up a cent from earlier this morning.
New claims for unemployment benefits rose to 383,000 last week from an upwardly revised 373,000 the week prior. Claims were expected to remain unchanged at a previously reported 370,000.
The ADP employment report shows the private sector added 133,000 jobs in May, fewer than the 148,000 expected.
The number of planned U.S. layoffs soared 53% in May from April to 61,887, according to Challenger, Gray & Christmas. It was the highest reading since September 2011.
A second reading on U.S. gross domestic product showed the economy expanded at an annualized rate of 1.9% in the first quarter of 2012, in line with economists’ estimates, but slower than an initial estimate of 2.2%.
“The market moved up nicely on Tuesday and closed close to a 2-week high. Then it gave everything back yesterday. The near term remains very unclear. Good news or no news from Europe sends prices up; bad news sends prices down. The intermediate term trend is down; the short term can go either way. This is not a time to take big chances. Conserve capital. Things need to be sorted out before you place big bets. This doesn’t mean you have to stop trading, it just means the near term can go either way, so you don’t want to be overly biased and you don’t want to be overly exposed to one side.”
Leavitt goes on to say, “The market needs some sort of resolution in Europe or the hostage situation that currently exists will continue to drag prices down.” Well we know that Europe isn’t going to fix itself anytime soon.
To contact me with suggestions or deserved praise:
Written by Gary
