The numbers behind Wall Street’s pain are depressing, to say the least…
U.S. unemployment in May notched up for the first time in 11 months to 8.2% and job growth checked-in at a sour 69,000.
On the upside, U.S. manufacturing showed continued growth, albeit slight. However, that beats the sector’s performance in both China and the eurozone, where deep contractions in manufacturing are long underway.
Nonetheless, U.S. auto sales are weaker than expected, which could be a leading indicator of more slowdown in manufacturing and an eventual contraction in the sector.
But it’s Wall Street that’s grimacing most of all. The economic instabilities that seem to be emanating from all sides are causing the sharp slide in stock market performance, says Jim Bianco, of Bianco Research:
“And as people have been waiting for that the markets have not been reacting to the negative news we’ve seen and it really is bad out of Europe, now today with the employment number, maybe we are finally starting to see people giving it up now and that’s why I think the move is appropriate that we saw a big selloff in stocks today.”