We saw a much-improved jobs report this morning with 379,000 new jobs created last month. That's well above analyst expectations of 179,000. While some analysts are not happy that 355,000 of these jobs are in leisure and hospitality, I would point out that we need those jobs to come back. An enormous portion of those businesses that closed forever were in leisure and hospitality, so it's good to see some other folks getting back to work.
Stocks rallied initially but began selling off later in the morning. Technology stocks are getting wrecked again today but have turned positive this afternoon.
The spike in Treasury yields is not helping stock prices very much as we close out the week either.
SPACs are also getting absolutely slaughtered today.
This is not unexpected. The reality of too much money chasing too few quality deals meant that this had to happen. Electric vehicle companies with zero sales are not worth $6 billion on any planet.
SPACs have a long history of making poor deals. Contrary to some of the scammer promotions you see out there right now, Wall Street is not shutting all of these wonderful companies out of the IPO markets. Many of these companies do not pass even the piss poor thresholds and standards of Wall Street Investment Banks and could not even find a penny stock promoter to bring the public.
Private equity and venture capital companies are cheerleading the creation of all the SPACS last year and this. The pool of likely buyers willing to overpay for their portfolio companies has risen dramatically in the past 18 months. They no longer need to find a broker to run the IPO or get a deal to pass a competitor's due diligence to dispose of assets. There are now billions of dollars ...