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The Morning Outlook (BP, DIA, SPY)

|Includes: BP p.l.c. (BP), DIA, SPY
This morning, the unemployment numbers hit the street, dropping to 9.7%. (expected 9.8%)  payrolls grew by 431,000 in May. After hearing the news I would expect to look at the futures and see them up a few points. Today is not the case. Futures are pointing to a 1.5% lower open as hedge fund managers short the ETF’s to cover going into the open. SPY is down 1.8% and DIA is down 1.67%. It would appear that there is something amiss in the markets as we approach 9:30AM this morning. 


In other news, BP has STILL not capped their oil spill. The pipe has been successfully cut with the giant shearers, but nothing new has been reported. BP’s credit has been downgraded by moodys from Aa1 to Aa2 (unsurprisingly). The U.S. government slapped British Petroleum with a $69 Million bill, one of many I am sure as litigation is building against the company in what is sure to be one of the biggest legal smackdowns of all time. 
The oil continues to spread and is nearing the west coast and pan handle of Florida. New maps show worst case scenarios of the oil spreading around to the east coast of Florida, destroying the Keys and making its way up the east coast. Hopefully a strong hurricane season will not spread the oil inland either, as this is not an “el Nino” year. 



It seems there is never a dull day in the market any more. Nervousness and fear run through the veins of most traders, so I hope you all took your Asprin and blood pressure medication today, because it is sure to be rough road in the next few months. 
In world news, Naoto Kan was officially elected as Japan’s new Prime minister and South Korean President has begun to press the North about giving up their nuclear weapons (which they will surely never do). Finally, the Euro continues to drop amid fears of further debt troubles. I am waiting for the U.K. to just drop the currency completely and switch back to Pounds. Hope everyone kept their Marks and Francs.

To view this article at World Market Media click on the link below:

Disclosure: no positions