Thursday, July 02, 2009

Summer Swoon

The stock market did exactly the opposite of what I thought it would do this week. Getting the blame for the meltdown today was a poor jobs report.

The stock market found little to celebrate heading into the long holiday weekend.

Major stock indexes fell more than 2.6 percent Thursday, pushing the Dow Jones industrials to their lowest level in six weeks, after the government said the unemployment rate hit a 26-year high and employers cut far more jobs than expected.

...

Since hitting multi-month highs on June 12, the Dow has fallen a total of 5.9 percent, while the S&P 500 index has lost 5.3 percent.

Looks like the Summer Swoon is here. 

Employment is a lagging indicator and does take time to turn around even if other economic indicators are improving. 

Of course, even those who are employed may be facing declining salaries via pay cuts.

If there is a silver lining, it is very unlikely that any of this is impacting Jessica Biel (pictured). 

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