Payrolls rose less than projected in August (96,000 vs. estimate 130,000) and the unemployment rate was driven down by individuals leaving the labor force (8.1% vs. estimate 8.3%). Treasuries rose and gold rose on my investors believing that Fed policy makers will expand record monetary stimulus next week. This belief is based on Bernanke calling unemployment “a grave concern”. S&P as a result beat the new high since 2008 it set yesterday on stimulus bets. DJIA did the same.
Apple climbed 2.3% to a record $680.44 after product event invitations for Sept. 12 were sent out. The product is believed to be the new iPhone.
Intel cuts 3Q sales forecast citing weak demand. Normally during this time of year, computer chips pick up in anticipation for the holiday season. This suggests a weak PC market in 3Q as consumers continue to flock to tablets and smartphones.
Kroger 2Q EPS $0.51 vs. estimated $0.49. Sales $21.73B vs. $21.91B. Kroger raises year EPS forecast. Rising commodity costs cut into Kroger’s profits, as the company also faces increased competition from big-box retailers.
