Thursday, May 05, 2011
Stock Market Commentary:
Stocks fell for the fourth consecutive day after jobless claims unexpectedly rose last week and a host of other capital markets (i.e. oil, silver, gold, etc) plunged in heavy volume. From our vantage point, the market rally is under pressure due to the lackluster action in the major averages and so many leading stocks.
Jobless Claims Rise & Global Markets Continue To Pullback:
On Thursday, global capital markets continued their week-long pullback to consolidate their recent and robust gains. Before Thursday’s open, the Labor Department said U.S. jobless claims rose by +43,000 to 474,000. A separate report showed U.S. productivity slowed in the first quarter as labor costs rose. Looking forward, investors are now waiting for April’s non-farm payrolls report which is slated to be released before Friday’s open.
Market Outlook- Rally Under Pressure
From our point of view, the market rally is under pressure which suggests caution is paramount at this stage. We would be remiss not to note that a slew of leading stocks suffered heavy distribution earlier this week which is not ideal. If you are looking for specific help navigating this market, please contact us for more information.