Oo-de-lally Markets and the Stealth Slowdown

                                                           

The report from ADP sobered up investors on Wednesday. The payroll processor estimated that the private sector added just 330,000 jobs in July, around half what Wall Street was expecting and less than half of ADP's estimate for June.      August 04, 2021   Today's Top Stories From the Breitbart News Desk The report from ADP sobered up investors on Wednesday. The payroll processor estimated that the private sector added just 330,000 jobs in July, around half what Wall Street was expecting and less than half of ADP's estimate for June. But the reaction to the estimate was tempered by the fact that ADP has not had a great record in recent months for tracking the official data on jobs. The economic gyrations have not only made it much harder to forecast economic developments, but also to observe them in real-time. We've been arguing this week that inflation may be concealing a broader slowdown in the economy than is currently priced into markets and expected by economists. Nominal dollar denominated data points keep rising, but data on prices suggests that real output may be sluggish. The nonfarm payrolls number to be released on Friday will offer a glimpse at whether this stealth slowdown has hit the labor market. The consensus estimate for Friday's jobs number is 900,000, above the 810,000 reported for June. That seems high—even if we look past the ADP report. Bank of America's Global Research team estimates that the figure will come in at 550,000, which strikes us as a more realistic projection. Ironically, a worse than expected jobs report could end up being good for stocks because it would give Jerome Powell and his team at the Federal Reserve license to hold off on tapering the $120 billion a month bond-buying scheme. We would be remiss to end without mentioning a decidedly unsober part of the market today. Shares of Robinhood were up by as much as 80 percent on Wednesday, after jumping 24 percent Tuesday. By the end of trading, they were up by a mere 50 percent. The proximate cause of this might be summed up in the lyrics of the song from the Disney classic: "Robin Hood and Little John walking through the forest. Laughing back and forth at what the other one has to say. Reminiscing this and that and having such a good time. Oo-de-lally, oo-de-lally, golly, what a day." In other words, the stock has became another YOLO meme-trading bit of financial nihilism that is storming the heights for no reason other than some traders are willing to pay fantastical sums for the pleasure of participating in the run up. Golly what a day, indeed. – Alex Marlow & John Carney Breitbart News Network     TOP STORY   Bidenflation Still Burning White Hot Throughout Services Sector Inflationary pressures continued to rise in the services sector in July, surveys of business executives showed Wednesday. The prices index of the Institute for Supply Management's survey of executives in services businesses rose to 82.3 percent, up 2.8 percentage points and the highest level for its price index since 2005. "Costs have risen dramatically in the last 45 days. Lodging, fuel, travel and supplies are all rising sharply. Costs for available labor are also rising, as demand increases in a diminished labor pool," an executive in the construction industry said. [Click here for more]   IN OTHER STORIES... Kennedy: Biden Eviction Moratorium 'Unconstitutional,' 'Unwise' Senator John Kennedy (R-LA) on Wednesday sounded off on President Joe Biden's decision to extend the eviction moratorium amid a recent surge in coronavirus cases. While speaking with Fox News Channel's "America's Newsroom," Kennedy described the eviction moratorium as "unconstitutional" and... [Click here for more]   Oo-De-Lally: Robinhood Shares Jump 65% Robinhood shares surged higher at the market open Wednesday, bringing the newly public stock trading app's rally to more than 120 percent for the week. Shares of Robinhood jumped 65 percent to around $77 per share on Wednesday. At one point shares hit... [Click here for more]   Payrolls Disaster? ADP Report Shows Hiring Falling Far Short of Expectations Has the recovery stalled? U.S. businesses added just 330,000 jobs in July, according to a report from payroll processing firm ADP Wednesday. That was less than half of the 680,000 forecast by analysts, according to Econoday. June's estimate was revised down to... [Click here for more] FOLLOW   Did you receive this email from a friend? Sign up to receive Breitbart Business Digest.   ©2021 Breitbart News 149 S. Barrington Ave. #401 Los Angeles CA 90049 USA Want to change how you receive these emails? You can *update your preferences or *unsubscribe from this list. Subscription Information This email was sent to  Webmaster220 Bible Study Blog *the blog owner has deleted the hyperlink intentionally