Is this the end of the Market "hype"?... I like this writer's question... is "bad news"... bad news, again?
http://www.cnbc.com/id/100791707 By: JeeYeon Park <http://www.cnbc.com/id/19075466> | CNBC.com Writer Twitter 30 LinkedIn 1 Share Stocks added to sharp losses Wednesday, with the Dow down almost 150 points and all key S&P sectors in the red, following weakness in overseas markets and as investors digested several mixed economic reports. "For most of the year, the best thing that could happen for the market was to get data that were not too hot and not too cold—that would drive the Fed to keep QE and continue to provide liquidity for the markets," said Michael Sheldon, chief market strategist at RDM Financial Group. "However, at some point, if the economic data start to deteriorate, then instead of bad news becoming good news, the bad news may just be bad news. In other words, if the economic data really start to turn lower, investors may start to wonder whether the Fed really has any power left to turn the economy around." Name Price Change %Change DJIA <http://data.cnbc.com/quotes/.DJI> Dow Jones Industrial Average 15007.76 -169.78 -1.12% S&P 500<http://data.cnbc.com/quotes/.SPX> S&P 500 Index 1612.59 -18.79 -1.15% NASDAQ<http://data.cnbc.com/quotes/.IXIC> Nasdaq Composite Index 3408.66 -36.60 -1.06% The Dow Jones Industrial Average <http://data.cnbc.com/quotes/.DJI> dropped nearly 150 points, led by *Alcoa* and *Walt Disney*, extending its losses<http://www.cnbc.com/id/100788229>from the previous session. The S&P 500 <http://data.cnbc.com/quotes/.SPX> and the Nasdaq<http://data.cnbc.com/quotes/.IXIC>also declined. The *CBOE Volatility Index (VIX)*, widely considered the best gauge of fear in the market, traded above 17. Most key S&P sectors were in negative territory, led by *utilities *and * materials*. (*Read More*: June Market Swoon Ahead? Maybe Not, Traders Say<http://www.cnbc.com/id/100785564> ) Play Video Long-Term Investment Tips: Expert Tim Holland, TAMRO Capital, weighs in on investing for the long haul, as consumer debt declines and M&A activity picks up. The private sector created just 135,000 jobs in May<http://www.cnbc.com/id/100791220>, according to the ADP National Employment Report, less than estimates for 165,000. The government's labor market report, which includes both public and private sector employment, will be reported on Friday. Economists surveyed by Reuters expect to see a gain of 170,000 jobs, slightly higher than the 165,000 jobs added in April. Lee Hardman, a currency economist at Bank of Tokyo-Mitsubishi, said in a note that the ADP report has been an inaccurate predictor of nonfarm private payrolls so far in 2013, over or underestimating numbers by just under 50,000 on average each month. Traders, however, have used the weak economic conditions to keep hopes up that the Federal Reserve will not back off its easing measures anytime soon. Meanwhile,the pace of activity in the services sector ticked higher in May to 53.7 <http://www.cnbc.com/id/100788663> from 53.1 in April, according to the Institute for Supply Management's services index. A reading above 50 indicates expansion in the sector. However, a key employment measure slipped to the lowest level since last July at 50.1 from 52.0. "The ADP employment data and the employment component within the ISM services report, while not perfect, provide a hit that this month's employment data may be on the softer side," said Sheldon. (*Read More*: Why Bad News Soon May Just Become...Bad News<http://www.cnbc.com/id/100788466>) In other economic news, factory orders rose 1 percent in April, recovering from a 4.7 percent drop in March, according to the Commerce Department. And unit labor costs tumbled 4.3 percent, while productivity rose 0.5 percent. The Fed's Beige Book <http://www.cnbc.com/id/45975341>, its region-by-region assessment of the economy, will be out at 2 pm ET. Play Video Warning Signs You Can't Ignore: Nobel Laureate Robert Engle, NYU Stern professor of finance, shares his thoughts on which countries face the largest systemic risks, including Japan, France, China and the United States. Earlier, the Japanese Nikkei <http://data.cnbc.com/quotes/.N225-JP> tumbled nearly 4 percent when Prime Minister Shinzo Abe's third "Abenomics" arrow to boost the economy failed to impress investors. Other Asian indexes and European bourses <http://www.cnbc.com/id/100790356> also traded lower on the news. "The comments made by Abe today were not really a game changer and disappointed a market which seems to have been positioned for a USD/JPY<http://data.cnbc.com/quotes/JPY%3D>and Nikkei rally," wrote IG Index market strategist Stan Shamu. (*Read More*: Japan Fires 'Third Arrow,' Execution Now Key<http://www.cnbc.com/id/100790135>) The so-called third arrow of Abe's growth-reviving strategy follows monetary and fiscal stimulus measures that were put into place earlier this year. So far, however, Japanese stocks remain jittery on fears of a tapering of stimulus measures by the Federal Reserve, and stuttering growth in China. In company news, Apple <http://data.cnbc.com/quotes/AAPL> declined after the U.S. International Trade Commission ruled that the company infringed on a patent owned by Samsung <http://data.cnbc.com/quotes/593-KR> and issued a limited order stopping all imports and sales for AT&T models of the iPhone 4, iPhone 3GS, iPad 3G and iPad 2 3G. (*Read More*: With Latest Ban, Has Samsung Cornered Apple?<http://www.cnbc.com/id/100790381>) The Treasury Department said it will sell an additional 30 million shares<http://www.cnbc.com/id/100769822>of General Motors <http://data.cnbc.com/quotes/GM> common stock from the government's bailout of the U.S. auto sector. The Treasury, has said it will finish its exit by early next year. JPMorgan Chase <http://data.cnbc.com/quotes/JPM> will take an $842 million hit due to the bankruptcy of Jefferson County, Ala., the company said, sending its shares down 0.4 percent. Hovnanian <http://data.cnbc.com/quotes/HOV> zipped higher after the homebuilder posted quarterly results that topped expectations. The Mortgage Bankers Association said home loan applications fell 11.5 percent last week <http://www.cnbc.com/id/100790875> as interest rates climbed past 4 percent for the first time in a year. *—By CNBC's JeeYeon Park. Follow JeeYeon on Twitter: @JeeYeonParkCNBC<https://twitter.com/jeeyeonparkcnbc> * -- You received this message because you are subscribed to the Google Groups "Epistemology" group. To unsubscribe from this group and stop receiving emails from it, send an email to epistemology+unsubscr...@googlegroups.com. To post to this group, send email to epistemology@googlegroups.com. Visit this group at http://groups.google.com/group/epistemology?hl=en. For more options, visit https://groups.google.com/groups/opt_out.
