The S&P 500 dropped 9 points, -0.7%, to $1,305 with energy and material stocks leading the decline. The NASDAQ fell 23 points, -0.8%, to $2,814.

Among the day’s economic data, the US economy added 133,000 private sector jobs in May. However, this number was rather disappointing as economists expected the private sector to add 150,000 jobs. Additionally, the number of US workers filing new applications for unemployment benefits increased past industry forecasts. “You take the two together and the labor market is not what you want right now,” said Jim McDonald, chief investment strategist at Northern Trust in Chicago.

This downbeat unemployment report comes on the eve of the government’s closely watched unemployment report Friday morning. The unemployment report has fallen short of expectations for the past two months. Analysts expect non-farm jobs to increase by 150,000 in May with the market moving accordingly with tomorrow’s report. The Commerce Department lowered its estimate for first-quarter U.S. economic growth to 1.9% from 2.2%, in line with economists’ expectation that the U.S. economy slowed more than initial thought during the period. The price index for personal consumption increased 2.4%, as previously estimated.

European markets fell, erasing earlier gains after the downbeat U.S. data. The Stoxx Europe 600 slid -0.7% after slumping -1.5% on Wednesday.

Shares of Facebook (FB) continued to decline Thursday, down another -4.26%, and are now trading below $27 at $26.99. Once again, this marks a major loss from their IPO price of $38 and the $28 price Facebook at which Facebook was initially marketed. Joy Global (JOY), a mining equipment manufacturer, skidded -4.87% as it lowered its full year guidance on a slowing international market in Europe and more importantly, China. Ciena (CIEN) rallied 11.45% after they reported a fiscal Q2 adjusted profit that topped analyst expectations of a slight loss. TiVO Inc. (TIVO) dropped -6.86% as the DVR maker posted larger than expected quarterly losses due to litigation costs and updated a downbeat outlook on weaker sales due to on demand and cable services.

Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com

For more information, Follow Andrew on twitter at https://twitter.com/#!/KeeneOnMarket or like us on facebook: https://www.facebook.com/KeeneOnTheMkt

The Yen was up due to rising fears of the Euro, making for more costly exports in Japan.

The Hang Seng lost under .5% today with Land holding companies dragging the index down. China
overseas land and Investment LTD lost 4.25% and China Resources Land LTD lost over 2.5%.

The FTSEurofirst 300 is managing to stay afloat so far, ahead of US Employment data, being propped up
by the energy and banking sectors. Bank stocks are up .6% after 4 straight session losses.

The German retail sales rose .6% compared to an estimated .2% and the jobless rate fell to a 20 year low
of 6.7% from 7%.

Broadcasting companies News Corp, Disney, CBS and Comcast will be among the stocks to take a look at
today as they go to court to stop an internet television startup alleging the provider, Aereo, copy’s and
retransmits their programming.

Commodities are starting out similar to yesterday with crude, gold and silver all trading positive and
natural gas in the red this morning.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu

The Standard & Poor’s 500-stock index lost 17 points, or -1.3%, to $1,315, while the Nasdaq Composite shed 30 points, or -1%, to $2,841.

Leading the major regression today were US companies with significant international exposure. Energy stocks fell as crude oil dropped -3.2%, while Caterpillar (CAT), -2.50%, had the largest drop from the Dow. Stocks in the telecommunications and health care sectors fare relatively better on a day that saw all 10 sectors of the S&P 500 trade lower.

The Stoxx Europe 600 index finished down 1.5% and France’s CAC-40 lost 2.2%. In Spain, the IBEX 35 declined 2.6%, finishing near the day’s lows. The euro, meantime, slumped to $1.2373, its lowest level since the summer of 2010 and down from $1.2503 late Tuesday in New York.

Worries about Europe spilled into the crude-oil market, as prices settled at $87.82 a barrel, its lowest settlement this year. Gold prices rose 0.9%, to $1,563.40 a troy ounce. The yen fell against the dollar.

Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com

For more information, Follow Andrew on twitter at https://twitter.com/#!/KeeneOnMarket or like us on facebook: https://www.facebook.com/KeeneOnTheMkt

Leading the stock declines were U.S. companies with significant exposure to global growth.

Energy stocks led the fall as crude oil tumbled more than 2.5%, while heavy-machine giant Caterpillar CAT -2.64% and aluminum maker Alcoa AA -3.26% led the Dow decliners. Defensive stocks in utilities, telecommunications and consumer staples fared relatively better.

The fall is volatile stocks came as Spain’s banks saw an erosion in deposits, further intensifying the currency crisis in Spain and throughout Europe. Retail and corporate deposits in Spanish banks fell €31.44 billion ($39.31 billion) to €1.624 trillion, their lowest since the euro-zone debt crisis began, according to data published by the European Central Bank. In response to the deposit loss, the Spanish 10-year bond shot higher, to 6.641%, the highest level since November 2011.

The Stoxx Europe 600 index fell -1.3% and France’s CAC-40 lost -1.8%. In Spain, the IBEX 35 declined -1.5%. The euro, meantime, plunged to $1.2421, its lowest level since the summer of 2010 and down from $1.2503 late Tuesday in New York. The European concerns sent demand for U.S. Treasurys higher, pushing the yield on the benchmark 10-year note down to a record low of 1.6459%. The yield on Germany’s two-year bond, another haven, fell to 0.018%.

In economic news, the pending home sales data come out this morning with worse than expected results. In the report, pending home sales for April decreased by -5.5% on a month by month basis.

Research in Motion Ltd. (RIMM) slid -7.39% after it was announced that they expected to report an operating loss for the current economic quarter. RIM, manufacturer of blackberry smartphones, faces major competition from Apple’s iPhone and the Android market and is having sales problems. Apple (AAPL) -0.34% slipped after CEO Tim Cook expressed Apple’s interest in TV with their iTV or unknown, currently developing products, and said the company wants to move the majority of their manufacturing stateside. Pep Boys (PBY) plunged -21.89% after the auto parts retailer terminated an agreement to be taken private by Gores Group. Finally, FormFactor (FORM) climbed 6.43% after the semiconductor-equipment maker raised its second-quarter revenue outlook, citing strong demand of Dynamic Random-Access Memory and Flash memory.

Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com

For more information, Follow Andrew on twitter at https://twitter.com/#!/KeeneOnMarket or like us on facebook: https://www.facebook.com/KeeneOnTheMkt

Unprofitable:  I lose money on this trade if JOY closes under $52.78 or above $57.22 on June 15, 2012.  The most I can lose on this trade is the amount I paid for the Spread, $.28. 

Reason I Like This Trade:  I think that JOY will sell off on earnings and I I think it could sell off to $55 based on the 7.1% implied movement in the stock.  I think this represents a great risk vs reward as I am risking only $28 per 1 lot and could make $222.  Earnings are today after the bell.

UPDATE 5.31.2012  I was trying to take off half of my position for a a double, or $.56.  This trade is up 50% overnight, but I am leaving it on in order to maximize more value.

UPDATE 6.4.2012  This Spread is still worth $.56, so I am trying to take off half of the position for a double and leave the other half on.

UPDATE 6.5.2012  This Spread has not increased in value as I thought it would decay more.  I still like this Spread though.

UPDATE 6.7.2012  This Spread is Out of the Money right now and looked like a great trade, but has gone Rogue.  I am leaving this trade on for more possible downside in JOY and the stock market.

UPDATE 6.11.2012  JOY has been all over the place and right now this Spread is worth $.60, I am looking to take half of my positon off and let the other half ride until expiration.

UPDATE 6.13.2012  I took half of my position off at $.60 taking a double and I am leaving the other half on for more future profits.  I will leave this half on until expiration.

UPDATE 6.27.2012  I took off the other half for $1.80 on expiration, averaging $1.20 and took five time my money on a great risk vs reward on earnings.

Read more about worth by www.keeneonthemarket.com

RIM shares fell 7.9% to $10.34 in after-hours trading, pushing the Canadian company’s market capitalization under $6 billion, down from more than $39 billion at the start of last year.

Research In Motion Ltd. warned its business is deteriorating and will likely lose money for the second straight quarter, underscoring the uphill battle to turn around its flagging BlackBerry smartphone business. The dire outlook comes as RIM scrambles to cut costs ahead of the rollout of its next BlackBerry expected this year. RIM is depending on this phone and a new mobile operating system to rescue the business, yet it still hasn’t provided a date for the debut. Last year, RIM took a nearly half-billion-dollar write-down on unsold PlayBooks. In its last fiscal quarter, it wrote down $267 million in unsold BlackBerrys.

Analysts have been marking down their earnings estimate for the quarter for weeks, but most had still figured RIM would turn a small profit in the period. The company posted a $930 million profit in the year-earlier quarter, and it has maintained an annual profit since fiscal 2004. RIM also announced Tuesday it had hire outside advisers from J.P. Morgan Securities and RBC Capital to assist in a previously announced strategic review of options and to help its board to figure out how to salvage- or sell parts of its business. But RIM also said its cash holdings would increase in the quarter, from last period’s $2.1 billion stockpile. That is still a healthy cushion, and with RIM essentially debt free, it could alleviate some worry that RIM risks burning through cash as it scrambles to unroll its next phone by year-end.

Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com

For more information, Follow Andrew on twitter at https://twitter.com/#!/KeeneOnMarket or like us on facebook: https://www.facebook.com/KeeneOnTheMkt

Read more about RIMM and other articles at www.keeneonthemarket.com

Renesas, who took a huge blow yesterday and has lost 50% on the month, soared 27.5% on the day. Interestingly its gain today is due to the same reason forits loss yesterday, it’s seeking of 1b Yen for restructuring. The Hang Seng was down close to 2% today being drug down by holding companies Belle International Holdings and Espirit Holdings; both down over 2.5%.

The FTSEurofirst 300 fell just under 1% so far with Spanish worries still a rising concern. The banks are among the worst hit down 1%, with Bankia down 6% taking its drop on the month to 60%. National Bank of Greece is down 4.8% and Banco Santander is down .8%.
Commodities futures are looking bleak this morning with crude, natural gas, gold and silver all trading in the red with silver down 2.3% and natural gas over 3%.
The Mortgage Bankers Associations report shows purchase applications fell .6% in the week of May 25th putting the 4 week average down .7%. Refinancing applications also fell 1.5% despite mortgage rates being at a low 3.91%.
Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu