Weak Economic Data Spurs Recession Fears

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	Friday September 2, 2011 Email Me | Visit our Blog | Subscribe | Unsubscribe Trouble Reading this Email? - Click Here Pitiful Payrolls Poor Bank of America Refinances Surge Fellow Investor, We've observed for several months that there is little correlation between the ADP Payroll report and the Nonfarm Payroll number. And the non-correlation held true again for August. At some point, I will have to start calling this non-correlation a negative correlation. But I digress... The ADP was OK. The Nonfarm Payroll number was not. According to the Labor Department, the U.S. economy didn't add a single job in August. That's not very good. And the stock market is taking a beating for it. Estimates for Nonfarm Payroll growth ranged as high as 160,000. It's still surprising to me that economists are missing key data points by so much. There's always a little guesswork in economic forecasting, but the ratio seems unusually high these days. Of course, the weak employment data increases the odds that the Fed will act sooner rather than later. I would expect that to put a floor under the stock market. But where? The S&P 500 is testing support in the 1,175 range. There's potential for a move all the way back to the 1,120 range. That would be a terrific entry point, but I suspect we'd need to get additional bad news to push stocks that low. And since our best source of bad news is Europe... We've established that Fed stimulus won't help unemployment. That probably won't stop the Fed from trying it again anyway. I'm sure it's not a popular stance, but I still feel kind of sorry for Bank of America (NYSE:BAC). That company was so screwed over by former CEO Ken Lewis' acquisition of Countrywide, it's not funny... [continue reading at WyattResearch.com]       Click to view the remainder of the article... What Keeps Me Up at Night I don't want to scare you. But right now, the U.S. government is doing something incredibly stupid, which one man believes is likely to cause a huge crisis in America, in the next few months. Please do yourself and your family a favor, and get the facts on this situation, before it's too late. I've posted a full report, free of charge, here.   Market Snapshot US Markets - Sept 1 Close Dow Jones 11,493.57 -120 (-1.03%) S&P 500 1,204.42 -14.47 (-1.19%) Nasdaq 2,546.04 -33.42 (-1.3%) Currencies EUR/USD 1.421 -0.005 (-0.388%) USD/JPY 76.805 -0.14 (-0.182%) GBP/USD 1.619 +0.001 (+0.08%) Recent issues of Daily Profit Investors Enter September With High Hopes S&P, You've Got To Be Kidding What the Fed is Waiting For more» Valuable Investment Ideas From Wyatt Investment Research Banks Lead Market Sell-Off The bulls are going to need a major catalyst, or a slew of minor ones, to jump beyond 1250 resistance. more» Oil Stocks Attractive After Irene A number of oil stocks are worth putting on your radar screen in the aftermath of Hurricane Irene which barreled up the East Coast over the weekend. more» The Government Lies About Inflation We know the government lies to us about inflation. In fact, investors take this lie as just another cost of doing business as a willing participant in the world's greatest economy. more» Independent Investment Services Wyatt Investment Research provides investment research that is independent of the back door deals and machinations of Wall Street. more» Need to retrieve your password in order to view our articles? Click here. Disclaimer & Important Information Wyatt Investment Research and Daily Profit is owned and published by Business Financial Publishing, LLC of Washington D.C. Business Financial Publishing is neither a registered investment adviser nor a broker/dealer. Readers are advised that this electronic publication is issued solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. We encourage you to review our full Disclaimer and Disclosure policies. To view our Disclaimer Policy, please click here. To view our Disclosure Policy, please click 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. Did a friend forward you this newsletter? Click here to sign up for Daily Profit today! You are subscribed with the following email address: ignoble.experiment@arconati.us To unsubscribe from this newsletter, please click here. Copyright (c) 2011 Business Financial Publishing, LLC. | Privacy Policy Wyatt Investment Research c/o Business Financial Publishing 65 Railroad Street Richmond, VT 05477 PO Box 790