| Author | Message | ||
     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3782 Registered: 05-2011 Rating: N/A |
The stock market has gone back on the defensive in what has been a topsy-turvy week of trading action. The negative disposition can be pinned on the following influences: 1. An abiding sense that today's mixed employment report, which featured weak nonfarm payrolls growth (210,000) and a sharply lower unemployment rate (4.2%), isn't going to change a growing consensus among Fed members that a faster tapering pace is needed. The employment increase, as computed from the household survey (+1.136 million), was just too strong to dismiss. St. Louis Fed President Bullard (2022 FOMC voter) said he sees economic measures that argue for removing accommodation at a faster pace. 2. The WHO's contention that Omicron has now emerged in 38 countries with early data pointing to a strong transmissibility factor (though it is still too early to tell if it leads to more severe disease). 3. The huge loss in DocuSign (DOCU 141.49, -92.33, -39.5%) after its disappointing guidance, which is undercutting other growth stocks sporting high multiples as investors fret about the potential fallout in the event they, too, were to disappoint. 4. Disappointment that there hasn't been follow through on yesterday's rally effort, leading some to think it was a head fake (or, as it is said in the market, a "dead cat bounce"). The S&P 500 quickly getting knocked back below its 50-day moving average (4544). |