Stocks continued their decline today as a stronger-than-expected economic report increased concerns the Federal Reserve will keep raising interest rates to contain inflation. The July non-farm payrolls rose to 207,000, many economists prediced a gain of only 180,000. I told you a few weeks ago the summer numbers for employment would be higher due to the fact that students seek employment during the summer months.
The Dow closed down 52.07 at 10558 as oil prices and interest rates continued to climb. Interest-sensitive stocks like utilities, homebuilders and REITS led the market lower. The yield on the 10-year Treasury note rose to 4.39%. Market players are begiining to worry that the Fed Funds rate may now reach 4.25% by year's end.
Corporate Insiders are continuing to be heavy sellers in the market. Today's reading showed only 68 buyers and 268 sellers. Google insiders continued to sell in what will one day be described as one of the greatest get rich scheme's since Amway.
Next week should bring more selling. The next big turning point in the market should come from an announcement that will drive the price of oil lower. Until then, more of the same.
