The market is surprisingly flattish today considering that macro news was more lackluster than a republican fundraiser (umm, maybe that is a bad example) and earnings reports were few and far between. The big news was that ADP's employment data came out today and showed companies cut ~23k jobs last month which is much worse than the expectations that 40k jobs would be created. The drop in payrolls was a surprise to economists but then again they were also surprised by the sun continuing to come up every morning, Ricky Martin's sexuality, and the end of the movie the Blind Side. It's great that the market is up 70% from its bottom, but that has yet to do much for unemployed workers whose skills diminsh by the day. Until there is some uptick in employment, the market will have more downside risk than hand feeding a wild bear, playing russian roulette, or sleeping with Paris Hilton and refusing to use protection. In other macro news, the Chicago Purchasing Managers Index fell today below the guesses of economists and below the 5 year high from last month. The ISM said the index fell to 58.5 from 62.6, but remember anything above 50 is still expansion and anything hot and above 50 is on the MILF/GMILF borderline.
Internationally, Greece is planning a dollar bond sale in their attempt to ruin every currency. Greek bonds fell for a third consecutive day as the spread to the safer German bonds continues to rise. Also, Moody's downgraded their credit ratings of five Greek banks from "negative" to "look out below." If anyone gave a shit about what Moody's had to say, this may be relevant but after missing the downturn and being paid by the companies they are supposed to objectively rate, Moody's has less credibility than an Alan Greenspan economics lecture, a Jennifer Love Hewitt book on relationships (and no joke, she actually just wrote one), or a Donald Rumsfeld war plan.In stock news, Baker Hughes got closer to approval in their attempt to swallow up BJ Services. They'll have to spit out some assets to do so, but don't think the deal will be blown. Rite Aid, announced.. READ MORE INCLUDING ANALYSIS OF KITD's Q.
Disclosure: Long KITD