Stocks pulled back to start the trading week. At the close the Dow was down 269 points at 35,100 on heavy trading volume. Tesla motored higher as did most tech and financial stocks. Last week the Dow finished with a loss of less than a quarter point on higher trading volume. BTS and IBD indicators are positive for market action and the immense piles of sideline cash continue to use short term weakness as an opportunity to go long.
The Economy and Earnings
Last week’s labor report on Friday was a big disappointment. The gurus had expected north of 730,000 new jobs but the actual figure came in at 235,000 which was below every single estimate out there. Despite this large miss, the unemployment rate declined to 5.2% Why the big miss? It seems the gurus were expecting bars and restaurants to hire but with the resurgent delta covid variant, that did not happen. Within the report wages were up 4.3% from a year ago and hours worked also increased .02% which is respectable. Overall the labor report might allow the Fed to push back the date at which they start pulling back economic stimulus measures but short of that the markets took the report in stride and appear to be focused on the prospects for continued recovery, infrastructure spending and moving past the Kabul chaos.
Items of Interest
The Ballard scout troop had a busy August and our troop officially starts the new scout year with a picnic tomorrow. The kids are full of energy and back in school. Later this month scout leadership will have a green bar planning session at Camp Edwards to lay out goals and activities for this year.