Market Needs a "Hail Mary"

George Brooks |

Financial StocksBrooksie'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

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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
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Companies

Symbol Name Price Change % Volume
MMAC MMA Capital Management LLC 17.91 -0.16 -0.90 13,591

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