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News of the Moment

May 2, 2011 – 5:14 pm

The market this morning cannot ignore the gorilla in the room which is the death of Bin Laden. This will provide maybe a one day bounce or it may only give us a half a day bounce, but after that traders and investors will return to what matters, and that is earnings and growth prospects for earnings.

Growth prospects mean a better economy and more jobs. Friday we will get April’s official jobs numbers. ADP will release a report on private sector jobs before that as it does every month. The expectations are for growth of about 180,000 official jobs so private sector jobs will likely need to be higher than that as government jobs have been falling recently due to state budget constraints.

The ISM number for April as reported this morning came in at 60.4% from 61.2% in March. Anything above 50 is expansion. The prices paid component rose to 85.5%, a hint of inflationary pressures for manufacturers.

The removal of Bin Laden in the long run removes doubt and restores a little more confidence in world markets so in that sense it is a good thing for the markets but as always its earnings for corporations that matter to financial markets.

Good Trading
Steve Peasley

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