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Thursday, May 5, 2011

Good News Wrapped In Bad News Surrounded By Dismal News

Weekly jobless claims jumped to 474,000 last week, the highest number since August 2010. Commodities were clobbered in trading today, mostly on poor reports from Germany. So the news is still grim, but...

US Crude dropped $7.36 / bbl to $101.88 / bbl today and Brent Crude had the biggest one day drop since April '09. It looks like supply and demand has retaken control of the markets. Couple that with a report that a lot of spec money has been removed from the markets after the announcement of Osama bin Laden's death, and things are looking up a little. The Euro also slid against the dollar on reports the EU would not raise interest rates next month.

Things are still pretty bad out there, but maybe in the short term we'll get relieved of a little pain, which in the long term could help get the economy back on track on bit.

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