Our concerns for the past few weeks are starting to play out. June jobs lost equaled 467,000, a number much worse than expected by the wizard economists. Unemployment rose to 9.5% from 9.4%. Finally, weekly unemployment claims were 614,000. The markets didn't like what they saw and stocks proceeded to drop over 2.5% Thankfully the holiday weekend is here for investors to ponder what economic weakness may lie ahead.
Since March ninth, stocks looked like they were leaping into the next bull market but as we have been saying, it may only be a major bear rally. Unless second quarter earnings reports reflect growth in revenues and sustained earnings, expect stocks to wither on the "green weeds".
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