Succinct Summation of Week’s Events June 3rd 2016 (plus Sunday reads)

A summary of a lackluster week that included a poor jobs report that investors are still trying to figure out if that's a good thing or a bad thing.  The Sunday bonus is another fascinating reading list with articles ranging from our favorite topic of behavioral finance (Why IQ Matters More Than Grit), how the economy is impacting the 2016 presidential race and why it is so difficult to keep secrets, especially on Wall Street.  Hope everyone had a great weekend.

Succinct Summation of Week’s Events June 3rd 2016

June 3, 2016 4:00pm by Barry Ritholtz

Succinct Summations for the week ending June 3rd 2016

Positives:

1. Construction spending was revised up 1.5% from the previous reading of 0.3%.
2. Unemployment fell to 4.7%, down from 5% previously.
3. ADP employment report came in at 173k. The previous report was revised up from 156k to 166k.
4. ISM manufacturing came in at 51.3, up from 50.8 previously and above the 50.6 expected.
5. Factory orders rose 1.9% m/o/m, the previous reading was revised up to 1.7% from 1.1%.

Negatives:

1. Nonfarm payrolls fell to 38k, well below the 123k expected (35k from striking Verizon employees).
2. Chicago PMI fell to 49.3, down from 50.4 previously and below the 50.7 expected.
3. Consumer confidence came in at 92.6, down from 94.2 previously.
4. MBA mortgage composite index fell 5% w/o/w.
5. PMI manufacturing stalling out at 50.7, with the production component falling below 50 for the first time in almost seven years.
6. Construction spending fell 1.8% m/o/m.
7. ISM non-manufacturing fell to 52.9, down from 55.7 previously.

10 Sunday Reads - The Big Picture 6-5-16

10 Sunday Reads

June 5, 2016 7:00am by Barry Ritholtz

My easy-like-Sunday-morning reads:

• Are Unicorns Killing the 2016 IPO Market? (Barron’s)
• Intel 401(k) Participants Sue Over Hedge Fund Losses (BNA) see also Intel Lawsuit Questions Place of Hedge Funds in Retirement Plans (NYT)
• Japan’s Debt Burden Is Quietly Falling the Most in the World (Bloomberg)
• Why IQ matters more than grit: How to think about intelligence — a conversation with an IQ researcher. (Vox) see also Michael Lewis Explores Why People Tend to Go With Their Guts (NYT)
• Economic Scars Help Explain Bizarre 2016 Race (WSJ)
• Bloomberg just hired 22-year-old Apple scoop machine Mark Gurman (Re/code)
• Yes, Nick Kristof, There Is a Conservative Bias in Economics (Fiscal Times)
• DOD continues quest to make “Iron Man” exosuit for special ops (Ars Technica)
• Trump’s 3,500 lawsuits unprecedented for a presidential nominee (USA Today) see also Ex-Employees Criticize Trump University, Calling It ‘Scheme’ and ‘Total Lie’ (WSJ)
• This Is The Secret To Keeping Secrets: Ethics aside, these are the psychological reasons why it’s so hard not to spill the beans. (Fast Company)

Be sure to check out our Masters in Business interview this weekend with Steven Pinker, Professor of cognitive psychology at Harvard, and author of How the Mind Works.