-- Posted Friday, 8 July 2005 | Digg This Article

Market Analysis from CapitalUpdates.com:

Nonfarm Payrolls came in less than the expected 195,000 at 146,000, and that is including the BLS net birth/death adjustment that added 184,000, meaning that without the adjustment, there would have actually been a loss of 38,000 Payrolls.  Revisions to April and May added 44,000 jobs to previous estimates, but the payroll picture for the past few months is still pretty paltry when excluding adjustments.  After today’s revisions, a total of 542,000 Payrolls were reported in the past 3 months  This includes upward BLS adjustments of 648,000, meaning that Payroll growth without adjustments is actually a negative 106,000!  Regardless of revisions and adjustments, the report was seen a goldilocks one on Wall Street.  The reported number, while below expectations, was seen as solid job growth without worries about inflation and expected higher interest rates.

The Unemployment Rate came in lower than the expected 5.1% at 5.0%, the lowest since September, 2001.  Average Hourly Earnings came in as expected at 0.2%.  The Average Workweek came in less than the expected 33.8 at 33.7.

Wholesale Inventories for May came in less the expected 0.5% at 0.1%.  Sales were unchanged.  Consumer Credit for May came in less than the expected $4.0 billion at -$3.02 billion, the first drop in 18 months.

G8 leaders announced a $50 billion boost in development aid for developing nations in Africa, as well as $3 billion in additional support for the Palestinians.  “The major failure was in the area of global warming, where staunch opposition from Bush thwarted Blair's efforts to get a U.S. commitment to firm targets for reducing the greenhouse gas emissions blamed for warming the earth's atmosphere.”  There was no word over talk about China, energy, or the world economy.

Oil traded over $61 Friday morning on worries over hurricane Dennis, but fell off by the end of trade as traders speculated it would miss most oil platforms in the Gulf of Mexico.  Oil ended down $1.10 to $59.63 on Friday, but is still higher on the week by $1.88 or 3.26%.

Treasuries fell throughout the day Friday as the jobs report reinforced expectations for further rate hikes and pushed yields higher.

For the week, the yield is higher by 1.48% and the bond is lower by 0.66%.

The Dow, Nasdaq, and S&P gained throughout the day Friday on a strong, but not too strong, jobs report, and a mostly positive economic week.  Worries over higher interest rates and inflation due to mostly positive economic data seem to have subsided, at least for now.  The Nasdaq closed at its second highest level of the year at a 6 month high.

For the week, the Dow is higher by 1.41%, the Nasdaq is higher by 2.7%, and the S&P is higher by 1.46%.

Among the big names making news in the market Friday were Google, Volkswagen, WPT Enterprises, Exxon and Aramco, Deloitte and Navistar, Amegy and Zions, JetBlue, NorthWestern and MPP, Morgan Stanley, and Alcoa.

The U.S. dollar index initially jumped to session highs following this morning’s jobs data, but it quickly fell off before a small rebound that left it near unchanged on the day.  The moves come from Friday’s jobs data, which was disappointing, but still points to higher growth than Europe and points to further interest rate increases.  The yen made new 13 month lows.

For the week, the dollar is higher by 0.04%, the euro is lower by 0.18%, and the yen is lower by 0.47%.

This week’s economic reports:

 

Consumer Credit - May

-$3.02B v. $1.16M

 

Wholesale Inventories - May

0.1% v. 0.7%

 

Nonfarm Payrolls - June

146K v. 104K

 

Unemployment Rate - June

5.0% v. 5.1%

 

Average Workweek - June

33.7 v. 33.7

 

Hourly Earnings - June

0.2% v. 0.2%

 

Initial Jobless Claims - 7/02

319K v. 312K

 

ISM Services - June

62.2 v. 58.5

 

Factory Orders - May

2.9% v. 0.7%

 

Factory Orders ex. Trans. - May

-0.1% v. -0.4%

 

 

 There are no major economic reports next Monday or Tuesday, but the following 3 days bring another slew of economic data.  Among the highlights are the Trade Balance, the Treasury Budget, CPI, Retail Sales, and PPI.

 

Gold & Silver Report from GoldSeek.com & SilverSeek.com: 

 

Gold Warehouse Stocks:	5,816,575	-
Silver Warehouse Stocks:	104,323,919	-

 

COT Gold Report - July 8, 2005

 

COT Silver Report - July 8, 2005

 

Gold traded higher in Asia and London before a brief spike downward at the New York open on the release of Friday’s jobs data.  Gold soon recovered and made new highs at $425.20 before falling off in late morning trade and ending with a loss of $0.40 to $422.70. Silver followed a similar pattern, but retained most of its gains after the rebound in early New York trade and gained $0.03 to $6.96.

 

For the week, gold is lower by $1.90 or 0.44% and silver is higher by $0.11 or 1.61%.

 

Gold and silver equities climbed over 1% in early trade Friday before steadily falling off to near unchanged by the afternoon and remaining mostly slightly lower into the close.

 

Index	Close	Gain/Loss
XAU	92.17	+0.01%
HUI	199.88	-0.17%
GDM	646.09	-0.14%

 

For the week, the XAU is lower by 1.3%, the HUI is lower by 1.08%, and the GDM is lower by 1.34%.

 

 

Gold & Silver Stock News Update from GoldReview.com:

 

Placer Dome’s falling copper output at its Zaldivar mine in Chile due to a strike, Kinross Gold’s update on late financial statement filing, Banro’s intersection of gold mineralization at its Lugushwa project, and AngloGold’s second quarter earnings call were among the big stories in the gold and silver mining industry making headlines Friday.

 

WINNERS

1.      Seabridge Gold	SA +5.33% $3.16
2.      Minefinders	MFN +4.46% $4.68
3.  DRDGOLD	DROOY +3.09% $1.00

 

LOSERS

1.       ENDEAVOUR	EDR.V -5.56% $1.70
2.       Lihir Gold	LIHRY -3.63% $17.78
3.  Randgold	RANGY -3.57% $1.62

         

Note:  Winners & Losers Will No Longer Track Stocks Under $1.

 

Would you like to receive the Daily Gold Seeker Report in your e-mail?

Click here.

 

Do you have questions, comments, or suggestions about this report?  Email Chris Mullen at cm@goldseek.com.

         

- Written by Chris Mullen

 

 

The Gold Seeker Closing Report is a free edition providing a daily wrap-up of gold & gold-related news.  For more in-depth analysis of the gold markets, subscribe to The Gold Forecaster.

 

All sources are given within the report and most articles can be found as they are released at http://www.capitalupdates.com/, http://www.goldseek.com/, http://www.silverseek.com/, and http://www.goldreview.com/.

 

© Gold Seeker 2005

Note: The following article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

 

 

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions.  The author of this report is not a registered financial advisor.  Readers should not view this material as offering investment related advice. GoldSeek.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond GoldSeek.com’s control, no representation or guarantee is made that it is complete or accurate.  The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.  Past results are not necessarily indicative of future results.  Any statements non-factual in nature constitute only current opinions, which are subject to change.  GoldSeek.com and employees associated with Gold Seek LLC do not trade the stocks mentioned in stock reports for one week prior to and one week following publication. The information presented in stock reports are not a specific buy or sell recommendation and is presented solely for informational purposes only.  The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise outside of the trading timeframe listed above. GoldSeek.com may have been compensated for their services in preparing and publishing this report. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein.  Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.

-- Posted Friday, 8 July 2005 | Digg This Article

Previous Articles by Chris Mullen, Gold Seeker

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer