+0.36%
+0.60%
Yesterday’s action pretty much erased the dramatic drop on Tuesday. The Russell 2000 (RUT) is leading the market once again on the way up but is still just under 3% off its 2012 closing high. The S&P 500 (SPX) is within 1% of its high this year.
Today’s payroll report coupled with the Greek debt swap participation reaching critical mass is certain to set the tone for the markets. My concern is not so much for the non-farm payroll number but for the unemployment rate. Improving economic condition may be attracting people back to the labor market which could raise both the numerator and denominator for the unemployment calculation.
What is certain to have more lasting economic and market impact was yesterday’s Senate rejection of the Keystone Pipeline. If you recall, earlier this week I wrote that the Obama Administration’s lack of a meaningful energy policy is at the heart of rising energy prices. Energy prices could be the President’s Waterloo and causes the equity markets to stop dead in its tracks.
Also in after-hours news, Starbucks (SBUX) announced that it would co-produce and market a single-serve coffee machine. This came after the coffee house operator’s stock rose to an all-time high. Shares of Keurig single-serve manufacturer, Green Mountain Coffee (GMCR) tanked on the announcement. Other noteworthy stocks reaching all-time high prices were Coach (COH), Chipotle Mexican Grill (CMG) and Buffalo Wild Wings (BWLD). CMG is knocking on the $400 price plateau.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC was long COH, BWLD and CMG stock— although positions can change at any time.
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant and agricultural stocks. You can subscribe at www.restaurantstox.com
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You can email Scott at [email protected]
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