Banks Leading the Decline

To ensure delivery of this newsletter, please add mail@wyattresearchnewsletters.com  to your address book.   To be removed from the list and stop receiving Daily Profit please click here. Wednesday June 1, 2011 To unsubscribe - click here Employment Numbers Miss Banks Leading the Decline Is QE3 Coming?   Fellow Investor,   The ADP Payroll report is out - and it is bad. As in, not at all good. Not even a little. According to payroll processing firm ADP, payrolls in the U.S. rose by 38,000. Expectations were a bit rosier, at 170,000. Some sources were even looking for 190,000.     This sure doesn't bode well for Friday's Non-Farm payroll number. 180,000 jobs are expected for May. We'll see if the government statisticians can pull a rabbit out of Uncle Sam's hat. It would seem unlikely.   But on the other hand, the ADP report hasn't been the best indicator for Non-farm payrolls.   We must consider what incentive corporations have to hire more. Profits are at record levels and productivity has surged. Demand is not increasing by leaps and bounds - so why add workers and capacity when there seems to be a sustainable balance between demand and production?   Of course, this is not the ideal situation. Far from it. But like I have observed, many jobs that were lost in construction, real estate and mortgage lending were "bubble" jobs and are not likely to return. And if you consider that the housing bubble started in 2004, then much of the recovery in employment after the Internet bubble was an illusion.   *****I expect the analysts and strategists who have been pushing the economic "soft patch" talk are getting a bit nervous this morning. This is starting to look worse than a "soft patch."   We haven't talked about banks lately, but they have not been trading well lately. Even when the stock market has been strong, banks have been weak. Citigroup (NYSE:C) has been moving lower ever since its 10-for-1 reverse split. Bank of America is now trading at its tangible book value.   Even one of the perceived leaders of the financial sector, JP Morgan (NYSE:JPM) is off 3.5% today.                                          Special opportunity, article continues below.   Isn't it time for you to take control of your finances and start building your retirement wealth? 5 Winning Funds Financial Advisors Aren't Telling You About It should be a crime. There are funds out there making real profits for investors right now, but financial advisors and brokers aren't directing their clients to them. Why? In some cases it's just plain ignorance; they have a list of their favorite 10 or 20 funds and those are all they ever direct their clients to. In other cases, it's just plain criminal that they promote only those that they get compensation from the brokerages on, whether you make money or not. Let me help you keep him honest. Let's take control of your investments. I'd like to start by sharing with you the 5 funds financial advisors not telling you about, but should. Click here for more...     Financials are usually considered a leading indicator for the stock market. Rallies are thought to be stronger when the financials are out in front. And the recent move higher for stocks has been conspicuous in that the banks didn't really participate. And now, banks are out in front of the market sell off after the bad employment data...   *****Of course, the weak employment data will raise expectations for QE3...   *****One final note: in an apparent response to recent criticism, Microsoft (Nasdaq:MSFT) is reportedly making a splash by agreeing to purchase Nokia's (NYSE:NOK) handset business (after all, Nokia wasn't doing anything with it).   This is a pretty radical move for Microsoft. I can't help but think it's related to Microsoft's recent Skype acquisition. Could Microsoft be planning a mobile Skype phone? That would at least be interesting...   Until tomorrow,     Ian Wyatt Editor Daily Profit       Follow Daily Profit Editor Ian Wyatt on Twitter:     Funding an American Retirement Low interest rates are penalizing savers and jeopardizing your retirement plan. Find out how to build your nest egg regardless of market direction. Is Your Win Rate 90%? If you're not winning on 90% of your investments we can help. In the last 2 years we've had 32 paydays out of 37 stocks, averaging 12.5% profit every 90 days. The 8.2% Bank With most banks paying a paltry 1% or less it's hard to stay ahead of inflation, let alone make a buck. One small bank in Manhattan rewards investors with an outsized yield.     To read past issues of Daily Profit or check out additional articles go to www.WyattResearch.com   You can also reach me at editorial@dailyprofit.com with questions and comments.     To stop receiving Daily Profit click here for the subscription preference center.     You are subscribed with the following email address: ignoble.experiment@arconati.us   For customer service questions or comments, contact us at service@wyattresearch.com. We don't sell our readers names. You can review our privacy policy here. If you believe this communication to be a mistake or unsolicited, please e-mail abuse@bfpnewsletters.com with details regarding your situation, and we will be sure to promptly investigate your situation. 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