Brooksie’s Daily Stock Market blog
Tuesday August 2, 2011 9:10 am EDT
DJIA: 12,132.49
S&P 500: 1286.94
If the BIG money saw the debt deal as something that would clear the way for a bipartisan effort to find solutions for reversing our national debt dilemma, yesterday’s market would have held its gain.
Without good Q2 earnings, the market would be lower.
Short-term (2-3 months), the bulls have two hopes. One that reports on the economy suddenly reflect stability, better yet renewed strength.
Two, that the Fed employs additional steps to stimulate the economy, including a third round of bond purchases, but at risk of contributing to inflationary pressures.
This is an important week for economic reports and they must make better than ho-hum reading. If disappointing, selling will intensify.
Unfortunately, the “debt deal” does nothing for jobs and the economy, in fact it ensures additional spending on job creators like the infrastructure can’t happen.
We get some important economic reports this week. If they reflect stability, even surprising strength, one of the weights on stock prices will be lightened. If weak, the market’s slide will quicken.
Wednesday: ADP Employment Report (8:30); Factory Orders and the ISM Non-Manufacturing Reports (10:30 am). Thursday: Jobless Claims (8:30 am); Friday:the Employment Situation (8:30am).
Today: Expect a brief rally assuming the Senate votes for the “debt deal,” but another leg down to follow.
George Brooks
…………………………………………………………………………………………………………
The writer of Brooksie’s Daily Stock Market blog, George Brooks,
is not registered as an investment advisor. Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. Readers are expected to assume full
responsibility for conducting their own research pursuant to investment
decisions in keeping with their tolerance for risk
Read Next
