Good morning. Amid growing views that rate cuts (and maybe more than one) will soon start, stocks at first rose at the open, but have since turned negative as employment numbers were quite a bit below expectation. Still, President Trump already informed a group of tech executives last night that the employment report would not be accurate, and it may take a year for “real numbers” to show. Meanwhile, there is quite a bit of optimism expressed by the administration as by we were told we will see: “huge, beautiful places, the palaces of genius … start opening up …” which, is something many of us should be excited about … as visions of genius palaces no doubt dance happily in our heads. Some might actually be able to afford such palaces … especially if they happen to have the winning numbers in tomorrow night’s Powerball drawing. Let’s take a teaspoon of imagination for a moment. Sure, $1.7 billion dollars is a ridiculously large amount of money … and many dream of what they would do … but imagine winning the jackpot not once … not twice … but almost 600 times! 600 times? Well, there is a proposal right now by the Tesla board that if certain targets are met, Elon Musk, will receive a pay packet that would be valued at $ 1 trillion dollars (with a “t”) which would add mightily to the coffers of the person already reported to be the world’s richest man. Somehow, I don’t see him as waiting in line over the weekend for a Powerball ticket. As for the Fed? It appears their next meeting will be contentious. We have some members agreeing with the President that rates should be cut … and economists at Citi agree, saying that the weakening labor market (quite evident this morning) should outweigh inflation concerns. Meanwhile, FactSet reports one committee member, Austan Goolsbee, claims being undecided while an alternate member, Beth Hammack, feels inflation to be “too high and trending in the wrong direction” … but … by the way … she does not have a vote … though she does get to share her views. Oh … and before I go … one other thing … and this is about last night’s NFL game. Taunting? 15 yards for taunting? Are they kidding me? It’s bad enough that almost every incomplete pass is interference, and games are on 21 different channels … but this taunting thing just has to go. Sorry … but it seems downright … un-American! That about wraps it up for today, as I head out the door to meet a friend for lunch. He wants to meet at IHOP of all places. I will admit that I like places that serve breakfast food at lunchtime, and am a big fan of flapjacks … but I find … IHOP’s French pancakes (having gotten rid of their Swedish ones) really give me the crepes. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
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