Chillin' out till it needs to be funded
If the Street is sad, it should not be at this time on Friday. Among top losers real time, IBM lost $2 to allow Buffet to buy more of the stock, while JP Morgan is now below $35. The Friday employment report to me, seems to have a good omen in the ADP Payrolls that jumped to 176000 bang on cue a day before the Jobs report. Last time the Jobs report had reported 225,000 Job additions after this number from the ADP Payrolls. However April and May BLS payrolls have been below 80-85K despite the ADP Payrolls reporting 133,000 additions.
Services grew 137,000 in May and 160,000 in June in keeping with higher PMIs reported in the sectors. Small and medium employers(<500) reported 165,000 of the 176,000 gains in June
With China, England and ECB following each other in cutting rates the next step woul dbe to extend the liquidity gains and implement the groth pact including the ne EUR120 B agreed last week. Italian yields are however 6% already again and Federal Bank Liquidity may be primary providers for stability operations in a few weeks.