Interesting morning!

First, ADP's payroll report was not very positive - at all. Far below economist estimates, and worst in four years. Of course that's a "private estimate"; the real number comes out Friday.

There is, however, reason to believe that the number might be right. Layoff plans up big huh? So says Challenger.....

Mastercard (MA) reported a huge quarter. Well, gee, isn't that what we've seen from everyone else in that sector? I do think so. As a consequence this should not be a surprise, and indeed it is further evidence that we've got more than a small problem with people blackening their credit cards.

The other "sleeper news" was that the Treasury is stopping the issuance of 3 year T-Bills. The "official explanation" is that the deficit is growing smaller, therefore, they don't need to issue them. Uh huh. And I'm Howard Hughes. Let's be real - in all probability the issue is that the bids they've been getting aren't what they'd like. Remember, not long ago they stopped issuing the "long bond" - the 30 - but then it quietly came back on the scene.

Last night H&R Block (HRB) dropped a bomb, in the finest tradition of late night announcements. Today its being spun to be a good thing, but credit facility reductions are not positive guys - no matter what sort of spin someone tries to put on it. The market seems to be (mostly) ignoring it; HRB is down modestly today.

Markets are up modestly today, but there's no real strength behind the move. Internals are quite good, but we're still looking at the same scenario we've been staring at for the last couple of months.

One quick aside - Usana Health Sciences (USNA). Simply amazing story here - a stock that has been extremely volatile, and a company that is quite literally under attack - not in the usual ways, but rather with an interesting twist - a securities lawsuit (common) aimed at the core of the firm's marketing model. This is the sort of suit that, if successful, has the potential to topple the company. With volatility as high as it is on this one, and a very high short interest as well, playing this issue (on either side) is a definite high-wire act.

More later as developments warrant.

Disclosure: I'm short USNA.

Labels: Credit, Layoffs, Payroll, Usana, USNA