Jobs Report, Rates, & Storm Preparedness

Last weeks sell off, fueled primarily from a weaker than expected jobs report, once again solidified the bottom of futures pricing.  The Unemployment rate rose to 4.3%, when most expected it to remain at 4.1%.  A sharp overaction was seen in Commodities immediately and followed in the stock market on Monday making many Americans 401K’s into 203B’s in a day.  Many now say that it is not when a rate cut will come, but how much.  General consensus appears to be a 50 basis point cut in September.  As I said many times, a cornerstone of market activity is based on expectations and reality.  Yesterdays buyback focused more on Inventories and harsh talk from Iranian Ministers with regards to a “strong and definite response” towards Israel since carrying out attacks on Iranian soil.  Mixing in with the larger than expected drop in crude inventories, most we put on edge and thus stalling any further dips in pricing.  Still, demand, while often overlooked, sits at about 1% lower than last year on both gasoline and diesel.  Right on cue, now Tropical Storm Debby, makes landfall this morning along the Carolina coast, far away from any Oil infrastructure.  Fear not folks, DKB is well prepared in storm situations.  We have the product, the fleet, and the staff to make sure you can still operate your business, even in the toughest of conditions.