Major averages fell yesterday on mixed volume despite a strong start after the European Central Bank announced a stimulus program set to start in October. Additional QE should continue to fuel the bull market. That said, the market routinely will correct by a few percent or more which typically takes leading stocks down more than a few pegs, so keeping stops tight is key in this market.
In economic news, hiring in the United States slowed in August as the economy created just 142,000 jobs, the smallest gain since December 2013, and below expectations of an increase of 228,000. Premarket futures are up on the news as this is further evidence that the economy remains sluggish at best, which in turn furthers the need to keep interest rates low for a prolonged period, i.e., keep the quantitative easing spigots on full. The flip side is that despite massive amounts of QE, the global economy remains sluggish, at best.
Chinese online social communication platform provider YY, Inv. (YY) had a pocket pivot yesterdayas it breaks out of its 6 month base. Earnings and sales remain stellar, pretax margin 37.5%, ROE 37.1%, group rank 12.
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