US Economy

Stock Market Today Moving on Keystone XL and Greece Bailout News

stock market today

Good Morning! Futures for the stock market today (Tuesday) forecast a 91-point increase for the Dow from yesterday's close.

What to Watch Today: Investors will keep their eyes on numerous earnings reports, and the continued drama in Greece. Yesterday, Greece's Prime Minister Alexis Tsipras said his nation will not consider any extension of its bailout terms.

Here's what else you should know about the stock market today - including your "Money Morning Tip of the Day" - to make it a profitable Tuesday:

January Jobs Report Doesn't Mean What Washington Says It Does

January jobs report

The January jobs report seemed like good news.

The U.S. Labor Department said 257,000 jobs were added to the economy. That easily beat the 230,000 numbers analysts had expected.

And yet unemployment ticked up to 5.7% from 5.6%. Money Morning Chief Investment Strategist Keith Fitz-Gerald sees the conflicting data in the jobs report as more proof the recovery is not the success President Barack Obama claims.

In this video, Fitz-Gerald discusses what the funny numbers from the January jobs report mean for the U.S. economy...

2015 Layoffs Blow the Cover Off the Job "Recovery"

2015 layoffs

Just over a month into the new year, and the 2015 layoffs are already mounting.

What gives? The economy is recovering. The unemployment rate rests at a six-year low of 5.6%. And sinking gas prices have stoked consumer confidence.

The job cuts are evidence that the touted job recovery has been artificially inflated.

Here's a look at 12 recent job cuts across several sectors and what's behind them...

The Rushing Bear Market and How to Prepare

bear-trap

Oil prices plunged to their lowest prices in five years last week after the International Energy Agency (IEA) downgraded its forecast for global oil demand for the fifth time in six months.

The IEA report told markets that global growth will remain weak in 2015, triggering an across-the-board sell-off in stocks and junk bonds on Friday that left the major indices with some of their worst percentage losses in three years.

Unfortunately, stocks are still trading within a few percentage points of record highs reached only a week ago and remain severely overvalued in the context of seriously deteriorating economic fundamentals.

Investors that were complacently expecting stocks to melt up to "Dow 18,000" and "S&P 2,100" by year-end are now facing a the much grimmer reality of a correction and even the potential of a bear market in 2015.

The Truth Behind the Dangerous "Helicopter Money" Delusion

helicopter money

Seeking out major trends and power shifts in the global economy is a part of my work that I enjoy most.

It's a lot of work, and needless to say, it involves constant research.

That's why a piece I recently read in Foreign Affairs absolutely shocked me...

The piece is a bit revolutionary, as its authors speak to a drastically different way of stimulating an ailing economy than the path we're on today.

Full story...

Fight Club: Shah battles "Dark Pools" apologist on NPR today

Today, Shah Gilani let some wicked punches fly, debunking the legitimacy of Wall Street's "Dark Pools" on NPR's popular talk show On Point.

As Shah himself said: "This is about how the market has been undermined and how it could collapse one day, literally, and trillions of dollars could be lost in a matter of days."

This "Hidden" Inflation Could Wipe Out Small Returns

Official measures of inflation tell a very different story from the reality facing consumers as they shop for groceries, gasoline, insurance, healthcare, and other everyday goods.

In the real world away from government statistics, product prices continue to rise at an inexorable rate.

Asset prices also continue to rise, particularly the prices of financial assets such as stocks and bonds as well as high-end real estate and art.

While there remain pockets of weakness in the housing markets, the prices of homes have also resumed their upward trajectory after crashing during the financial crisis.

So the question remains: If the prices of just about everything are rising, why is the government telling us that inflation is so low? Full Story

Just How Bad Is the Low Labor Participation Rate for Youth?

20140611_mr-varney1

In another sign that the U.S. economy is not as healthy as some in Washington would have you believe, the Bureau of Labor Statistics (BLS) has reported that the labor participation rate among youth aged 16 to 19 in February was a paltry 32.9%.

"The difference between 3% growth in the economy per year versus 2% isn't a 1% slower decline, it's a 33% slower decline, and you're really seeing these numbers add up," said Money Morning Defense & Tech Specialist Michael Robinson on FOX Business' "Varney & Co."

In this video, Michael discusses this troubling trend and offers some suggestions for how Americans can deal with it.

Read More…

Profit Massively from This "Margin Call" on American Homeowners

Get ready. There's more trouble ahead for home buyers, home builders, and especially homeowners who took out home-equity lines of credit before the housing crisis. Those heydays have turned into haymakers.

What's already started to happen might not only knock out the formerly aspiring but now petering-out housing recovery, but also might knock the already weak economy to the ground.

Back in the good old days, when banks and mortgage shops were selling mortgage money and home-equity credit lines like carnival barkers wowing crowds into the big top, millions of homeowners stepped right in.

That circus tent was nothing but a trap, however. And now I'm going to tell you what that trap means for those borrowers - and the rest of the economy... Full Story

The Fed's "Growth-Buying" Scheme Is Failing

The numbers are in. And they are ugly...

Based on preliminary first-quarter data, U.S. GDP (gross domestic product) growth is 0.1%.

That's not much.

But then again what do you expect for $3.4 trillion dollars of Federal Reserve spending to boost the economy?

So the question is, how is it possible that we've got nonexistent economic growth, or worse, negative growth and possibly another recession looming, when the Federal Reserve since September 2008 has spent $3.4 trillion to prime the economic pump?

This could push the whole economy past the brink... Full Story

The "Holy Grail" of Energy Investing Is Going to Make You – and Your Grandchildren – Rich

Storage has long been one of energy's biggest "Holy Grails." It holds the key to every significant move into smart grids.

The reason is pretty simple: If energy cannot be stored, it is lost. Even transferring it from one type of energy to another is of little consequence unless you can reverse the erosion in the entire system.

It's called entropy, and it's a pervasive problem.

Now, there are a number of rather complicated ways to explain this, but let's keep ours straightforward. Over time, a system ends up having more energy than can be readily used. This is always the biggest drain on any attempt to structure a more efficient approach.

So the basic question becomes how to "save" all of this energy from being lost.

That's what's at the center of a breakthrough project I came across yesterday...

March Jobs Report: Still Stuck in Second Gear

U.S. Labor Department jobs report The highly anticipated March jobs report out today supported what U.S. Federal Reserve Chair Janet Yellen said earlier this week: The job market is not back to normal and the Fed has more to do on the unemployment front. This morning, the U.S. government announced that the economy barely missed expectations of 200,000 new jobs […]

To continue reading click here...

© 2015 Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201, Email: customerservice@MoneyMorning.com