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Tuesday, May 07, 2013 – Good Times Roll

Good Times Roll by Sinclair Noe DOW + 87 = 15,056SPX + 8 = 1625NAS + 3 = 339610 YR YLD + .01 = 1.78%OIL – .64 = 95.52GOLD – 17.70 = 1453.60SILV – .08 = 24.06 The fun started in Asia as a weak yen sent Tokyo stocks to their highest level in almost five years while Australian shares closed lower after briefly erasing declines following the Reserve Bank of Australia’s to cut key interest rates. The yen has now lost one percent since Thursday; the result is a rally in the Nikkei, supported by upward revisions in earnings expectations for Japanese companies. Japan’s Nikkei 225 is up more than 50% in the past six months and overnight breached 14,000 for the first time since 2008. This is known as Abenomics, named after Shinzo Abe, the Japanese prime minister who has instituted a very aggressive form of monetary easing, much more aggressive than what the Federal Reserve is doing in the US; the plan will double Japan’s monetary base by the end of 2014. Later in the week, we’ll see if Abenomics is gaining traction as Japanese automakers report earnings; of course, it may still be too early to see Abenomics result in stronger earnings, but over time, a weaker yen should result in more car sales for the likes of Toyota and Honda. The world has done OK while Japan has stagnated. If Japan were to go back to something like a 3% growth rate, that would make …

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Friday, May 03, 2013 – Jobs on the First Friday in May

Jobs on the First Friday in May by Sinclair Noe DOW + 142 = 14,873SPX + 16 = 1614NAS + 38 = 337810 YR YLD + .12 = 1.75%OIL + 1.47 = 95.46GOLD + 3.30 = 1471.70SILV + .30 = 24.23 If you’ve been a regular listener over the years you know that I get a little wonkish on the first Friday of each month. That’s the day we get the monthly jobs report. I consider this to be one of the most important economic reports and so I spend a little extra time covering it. Stick around, and we’ll make you an expert. Today, the Labor Department reports there were 165,000 net jobs added to the economy in April. The unemployment rate dropped to 7.5%, down from 7.6% in March; that’s the lowest level since December 2008. The number of jobs added beat estimates of a gain of 135,000 to around 155,000. The number of new jobs created in March was revised up to 138,000 from 88,000, while February’s figure was revised up to 332,000 from 268,000.With the revision, the 332,000 jobs gained in February was the biggest monthly gain in jobs since November 2005. So, the economy created 114,000 additional jobs in March and February than initially estimated.The average for the past three months is about 211,000 jobs. It is widely estimated that the economy needs to add 250,000 over an extended period of time in order to see the unemployment rate drop below 6%. The number of …

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