The Market On Tuesday

Good morning. It is 65 degrees, sunny, and very pleasant here in Upstate NY. The remarkable Summer of '11 continues. The usual suspects were out walking, running, and dog walking earlier this morning. There was one new addition, I saw a racing biker tearing down a street. The guy was booking. He had on bike shorts and all, nice looking exotic bike. I personally could or would never wear that outfit. It takes a certain confidence to wear body paint.

At 7:30 a.m. futures are moderately down, the dollar is up, and oil is down.

So much for the narrative we were being told the last two weeks in that it was fear that the debt deal would not get passed, and that this reason alone was dragging the market lower.

Not so, the market is now floundering because the indications continue to come in that the economy is sputtering and stalling. In short, the economy blows.

On Friday the government releases data on job creation in July. I am reading that the report is predicted to reveal 78,000 new jobs. It is worth pointing out that recent predictions have been optimistic. The actual numbers have been disappointing.

CNN: Stocks set for losses amid economic fears

...fears that the U.S. economic recovery may be stalling.


The manufacturing report marked the sector's slowest growth in two years.


...gross domestic product for the U.S. rose at an annualized pace of just 1.3% in the second quarter.