Gold plummets $31 and unemployment drops to 9.5%

Gold plummets $31 and unemployment drops to 9.5%

As soon as GE/MSNBC/Pravda/Jim Cramer said "hyperinflation" could explain the current market forecast, gold plummeted and killed that theory.


The Dow Jones Industrials, DJI, is down 10% from the high… the definition of a correction.
http://finance.yahoo.com/q/ta?s=%5EDJI&t=1y&l=on&z=m&q=l&p=b&a=m26-12-9,v&c=


World Markets:
China recovery is being accelerated by domestic consumption as wages rise and China westernizes.

Economic Calendar
Personal Income in May rose 0.4% the same as initially reported last month. -Good news
Personal Spending May up 0.2% better than the 0% reported last month. - Good news
PCE prices up 0.2% or 2.4% per year- good and not inflationary or deflationary

Case-Shiller 20-city Index Apr rose 3.8% vs. 2.35% last month - Good News
Consumer Confidence Jun declined to 52.9% from 63.3% initially reported last month - Good news since it is showing a lack of confidence in Democrat-socialists so we can vote them out with only two years of Obama damage. If people were confident with this socialist government we would be in deep trouble.

ADP Employment Change June: Was a net 13K improvement after the temporary increase in census workers last month who are slowly being let go as the census nears completion. Net hiring has increased every month since April.
Chicago PMI Jun : At 59, 1 down slightly (within statistical variation) from 59.7 last month. Anything over 50 is good.
Crude Inventories 06/26 last wee declined 2M removing the 2M increase the prior week implying oil prices are stable and slowly rising.

Yesterday
Jul 1 8:30 AM Continuing Claims 06/19 were up 4616K from 4573K to be expected as graduates flood labor force. It means most graduates of college and high school are getting jobs.
Jul 1 8:30 AM Initial Claims 06/26 were 472K up from 459K to be expected as graduates flood labor force. This is not corrected for seasonal effects.
Jul 1 10:00 AM Construction Spending May dropped -0.2% from a 2.3% increase last month.
Jul 1 10:00 AM ISM Index Jun dropped slightly to 56.2 from 59.7 last month still very good manufacturing expansion.
Jul 1 10:00 AM pending Home Sales May declined 30% after declining -10.5% last month.
Jul 1 2:00 PM Auto Sales saw a drop in June vs., May, Although overall sales are still stronger than they were a year ago, Ford and GM reported sales below expectations. Ford reported sales were down 13% from May, but were still up 15% from a year ago. Analysts were looking for sales to be up 17% from last year. Still this is good considering it is not seasonally adjusted.
Jul 1 2:00 PM Truck Sales Jun was similar to car sales

Today
Nonfarm Payrolls Jun
Employment fell in June for the first time this year, reflecting a drop in federal census workers and a smaller-than- forecast gain in private hiring. Unemployment Rate Jun Employment at private companies (where we need it) rose 83,000.
The jobless rate fell to 9.5 percent from 9.7 percent
Jul 2 8:30 AM Hourly Earnings Jun fell -0.1 from a +0.2% last month
Jul 2 8:30 AM Average Workweek Jun dropped to 34.1 hours from 34.2 last month.
Jul 2 10:00 AM Factory Orders May


Market Outlook July 2, 2010
We are waiting for the bounce. The time for people and corporations to take profits is this year before the hefty tax increase goes into effect. Therefore we expect to see a rise in profits as December approaches and then a drop in profits and actual tax payments next year. Socialists show their abject stupidity in not knowing that productive people can legally delay or accelerate when they report income just by when they close transactions. Real estate investing at current low prices is just one way to invest and not have to take profits until later when the socialists are thrown out of office. The more the socialist try to hurt productive people the more rapidly the country descends into poverty. Communists take about 50 years to deplete the accumulated wealth of centuries. And all the that time they truly believe they are doing something good by spending the national wealth good and decent people accumulated and freely left for the nation. Bill Gates has added hundreds of billions to the US national wealth and is now giving away all his own money because he knows that too much inherited wealth can destroy a person's life.

Next year Obama begins his plan to attack the wealth of America's richest 2%. When Hitler did that he discovered they were mostly Jewish people. Obama also seems ready to pull the plug on Israel's economic support to please his socialist Moslem jihadist brotherhood. But no one on the left thinks they themselves are anti-Semitic. The Evangelical Lutheran Church in America (ELCA) are a good German church that now uses the Obama DNC political platform for guidance instead of the Bible or the Lutheran Catechism. Israel now restricts entry of known anti-Semitic ELCA members. It is well known now that American conservatives support the existence of the nation of Israel and liberals are the new anti-Semites.

World Markets
Asian markets were up with underlying stability last night. Shanghai up 0.4%, Hong Kong down -1.1%, India down -0.3%, Taiwan up 1.1%, and Japan up 0.1%.

European markets are up in a range of about 0.3% to 0.8% this morning about half way through their day.

US pre-market futures are flat this morning.