The general markets were down fractionally on higher volume, with the NYSE-based indexes logging a distribution day. The Russell 2000 Index, the market's leading index, managed to close up on the day, bucking the action in all the other major market indexes. The markets continue to trade in a relatively tight band, with the NASDAQ Composite baby-stepping higher since its gap up on the first trading day of the year, primarily due to weakness in Apple (AAPL) which carries the highest weighting in the index.
In mixed economic news, Challenger, Gray & Christmas said that both planned layoffs and planned hirings rose in January. First-time jobless claims were worse than expected. While personal income came in above views, personal spending missed consensus views. The Chicago Purchasing Managers Index was much stronger than expected. These economic news items had little impact on the markets.
This morning's BLS jobs number came in under expectations with the unemployment rate rising to 7.9% from last month's 7.7%. While this is not good news for job seekers, stocks are reacting positively initially given that the Fed is keying monetary policy to the unemployment rate. Thus today's jobs numbers ensured continued QEternity, and so gold and silver are reacting positively as well. We'll see how things shape up by the open and throughout this first day of trading in February.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.