- Moving the markets
The Dow raced ahead and ended just short of a 400-point gain, but gold again outperformed with another solid +1.53% showing. The S&P closed within 1.7% of its all-time high.
The mood was upbeat, not because of facts, but merely hope of further stimulus from the government to assist the out-of-work Americans. However, concerns surfaced that Friday’s widely anticipated payroll report may show that the rise in Covid-19 infections could have stalled the recent revival of business activity.
Payroll provider Automatic Data Processing Inc. ADP, also said only 167,000 private-sector jobs were created in July, far short of the 1.88 million forecast by economists polled by Econoday. However, a reading of services from the Institute for Supply Management service sector index jumped to a reading of 58.1 in July, beating expectations and signaling stronger economic growth.
While tech trailed the other 2 indexes today, the Nasdaq nevertheless has now closed higher in six straight sessions and has been outperforming the Dow and S&P 500 YTD, but it is still lagging gold, which again roared into record territory.
This word of caution came from ZH:
A body in motion will remain in motion.
And while tech bulls will pounds the table and vow that the current tech bubble is far less dangerous than the dot com bubble of 2000, the reality is that that fwd multiples are now exponential and it is only a matter of time before this particular law of Newton encounters a sufficient painful “external force” that will burst the current tech bubble too.
In the meantime, as you would expect from gold’s surge, the negatively affected asset class is the US Dollar, which, thanks to the reckless money printers at the Fed, continues its path of least resistance—down.Read More