June 1st - Stocks Tumble, Manufacturing Largest Drop Since 1984

www.marketwatch.com...

NEW YORK (MarketWatch) — U.S. stocks tumbled Wednesday after reports showed that U.S. companies hired fewer workers than expected and that manufacturing activity receded in May.

The economic numbers continue to disappoint, forcing economists to revise and change forecasts lower in the wake of what appears to be a significant slowdown,” said Kevin Giddis, managing director, fixed-income capital markets at Morgan Keegan.

How many people were hired last month?

American companies added 38,000 employees to their payrolls in the past month, according to data from ADP Employer Services. Economists had been expecting an increase of 175,000.

175,000......but only 38,000.....thats pretty terrible. They couldnt even get a QUARTER of the project numbers! Still waiting on the BLS statistics to come out with the unemployment data for May. Unemployment was at 9% in April, their last report.

More on the manufacturing side

www.marketwatch.com...

The Institute for Supply Management’s manufacturing gauge fell to 53.5% last month from 60.4% in April, marking the third straight decline and the biggest one-month drop since 1984. It’s also the lowest reading in 13 months

Economists surveyed by MarketWatch had expected the index to drop to 57.1%. Although any reading over 50% indicates that more manufacturers are expanding instead of shrinking, the index has tumbled since hitting a seven-year peak of 61.4% three months ago.

Fourteen of the 18 industries tracked by Tempe, Ariz.-based ISM expanded in May, down from 17 in April. Three industries — printing, furniture and food and beverage — contracted.

According to the article, all is not lost though. If manufacturing is still above the 50%, that means theres still growth, but 53% is very little, if any, growth. Anything below 50% means manufacturing is scaling back.

Related ATS thread - "We are on the verge of a great, great depression!"

Edit - Looking at marketwatch's main page, everything has fell, except for Gold, which is on the rise again.

your manufacturing numbers are bassed on the USD and most add inflation to the numbers so this 50% number in manufacturing is actually less. all i can do is laugh and cry at the same time

Also dont forget the flood of graduates now hitting the market this month. Its going to be a blood bath soon

reply to post by camaro68ss

your manufacturing numbers are bassed on the USD and most add inflation to the numbers so this 50% number in manufacturing is actually less. all i can do is laugh and cry at the same time

Cant say I didnt really rule that out either. Some of these "numbers" that come out, I usually think are worse than reported. Cant say I have much faith in what they say these days.

Also dont forget the flood of graduates now hitting the market this month. Its going to be a blood bath soon

Last I checked, about 25% of teens are expected to be unemployed this summer. Im guessing the number will be even higher now, possibly 30-40%, not to mention the college graduates. I have a feeling alot more people are going to be pretty ticked off this summer.

I love the dates involved here. Largest drop since 1984 on 6/1/11 or 666 if multiplied out (I know the numbers can shift to just about anything but I thought it was odd).

The white house will try to put a good spin on this news in some way. I'm surprised the market and economy has been holding on as long as it has. Anytime an Obama supporter tries telling me things are getting better I just simply reply, "What about the 14 trillion dollar debt?" That one seems to stump them every time.

Economy this week; what will dominate our attention next week?
Protests or Disaster (Natural/Man-made)

We've seen the pattern; after economic slip comes chaos:
Arab Spring; Egypt, Tunisia, Libya, Syria, Bahrain, Yemen: all caused by high unemployment, low wages, high prices.
European Summer; Greece, Spain, UK: who's next... Russia?

We're on track to see a real American Fall; U.S., Canada, Mexico, Brazil, Argentina?

So, anyone notice that 64 animals went missing from L.A. animal shelters, those animals sure are in tune, aren't they?

M.C. where you at? Theres gotta be at least a week left, right?

I guess we do have flooding, tornadoes, wild-fires, high temps, and even snow!

Heres another economic woe



The housing market is in a double-dip recession apparently.

This is great....corporations raking in RECORD PROFITS...yet NOT HIRING ANYONE!!!

I thought they needed more profits to create jobs???

WELL WHERE ARE THEY CHUMPS?!?!?!?!?!

Pay people to push brooms!!! NOPE...can't do that!! That would be trickle down economics!!!!!

I'm sick of this bs.

The top 5 oil companies made 36 billion in the 1st quarter alone. Where's all the jobs?

If they made that for a full year....that's 144 billion. Now divide that up by 50,000.

What does that equal?

2,880,000 jobs that pay 50k for the year.

WHERE ARE THE JOBS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

reply to post by David9176


www.nytimes.com...

American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or noninflation-adjusted terms.

Corporate profits have been doing extremely well for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history.

Gotta love trickle down econ.....

Looks like other countries stocks havent fared well either

www.marketwatch.com...

MADRID (MarketWatch) — European stock markets traded sharply lower in early action on Thursday, with banks especially responding negatively to a fresh downgrade on Greek sovereign debt, while heavy losses overnight for Wall Street also weighed on sentiment.

www.marketwatch.com...

SYDNEY (MarketWatch) — Asian shares tumbled Thursday, after some very weak U.S. data raised questions about future demand for Asian exports and fed into worries about the trajectory of global growth

reply to post by buni11687


I'm curious what effect this will have on the price of oil and gasoline? I would assume that the price will fall but since the dollar sucks so bad right now it doesn't really seem to make much of a difference.

Something tells me we'll see the next large drop on 6/3/2011 when the monthly job report is released.

If a drop between 100-300 points occurs, I would expect to see another large point drop on Monday 6/6/2011.

reply to post by PatriciusCaesar


DOW: 6/3/2011 11:40EsT (8:40PST); -101.30 points.

Halfway through the trading day and stocks are down. I can't say I'm surprised.