Your Weekly Blip 6/6/22

Your Weekly Blip 6/6/22

The Markets and Economy
Last week the Dow lost about 0.9% after gaining over 6% the prior week. Today the Dow closed up a whopping 16 points on higher trading volume at 32,915. Volatility is the order of the day as traders digest all the uncertainty of the days events. IBD still lists markets in rally mode but the latest rally feels more like finding near term support instead of a new sustained rally. Expect more uncertainty ahead.
The May labor report came in stronger than expected with unemployment at 3.6% while almost 390k new jobs were created. The fly in the ointment here is that this report keeps pressure on the Feds to continue their aggressive efforts in combating inflation with interest rate hikes and assets sales. The resulting prospect of these continued efforts are causing market gurus recalculate stock values in relation to rising interest rates. This trend could continue until we get clear signs that growth in inflation is starting to ease.
Several top CEOs lasts week spoke out and warned of potential increased market volatility ahead. The head of Goldman Sachs, JP Morgan CEO Jamie Dimon, Elon “Megalomaniac” Musk and others are now openly talking about storm clouds on the horizon from inflation, rising interest rates, lockdowns in China and the Ukrainian war which is now over 100 days long. There is concern that the Federal Reserve waited too long to address inflation and then when Ukraine was attacked and the China lockdown happened it boosted the fires of inflation above what the Fed projected and they are now having to play catchup. Citigroup chief economist Nathan “Silky” Sheets said the dream of efficient global supply chains has been shattered by the pandemic and the war and this means consumers and business will be dealing with inflation and shortages well into 2024. Despite this subdued outlook, job growth is good and consumer demand has yet to falter. Stay tuned.
Items of Interest
Troop 100 took top honors at the Aurora District Camporee with several patrols getting first or second place awards in the patrol competition and the senior patrol and scoutmaster winning its competition. Next up for the troop is family camp at Camp Casey on Whidbey island next weekend. At this annual event we will have a court of honor, elect the next senior patrol leader and top it off with a huge picnic dinner. Hopefully the weather will cooperate but if it rains we will have a contest to see who can set up a blue tarp the fastest!.