Friday, October 03, 2008
The Recession is Here
Despite the Senate passing the Bailout plan the night before there were more heavy losses in the market Thursday. The Dow fell 348.22 points, or 3.22 percent, to close the session at 10,482.85. The SPX lost 46.78 points, or 4.03 percent, to end on 1,114.28.
The losses came Thursday as Traders are starting to realize that we are in a recession and that even a bailout isn’t going to solve the economic pressures we are seeing. The markets might also be worried about the bill not passing through Congress who rejected a similar bill last week. The general fear is that problems in the credit markets are so bad that they are casuing so many problems in the wider economy that these issues could take a long time to resolve even with a bailout package.
Economic data of late has been on the disappointing side, raising concerns about Friday’s employment situation report. Jobless claims rose to highs not seen since the aftermath of 9/11 with claims hitting 497,000 for the week ending September 26. At the same time, factory orders plummeted 4.5 percent in August, which combined with yesterday’s ISM Mfg. Index to show severe weakness in the manufacturing sector. The problem is that things are likely to get worse before they get better. Nonetheless, if a bailout package is passed by the weekend, it could provide traders with a reason to be more optimistic.
Jobs data out today. Lets see what that is like.
Until next time.
The losses came Thursday as Traders are starting to realize that we are in a recession and that even a bailout isn’t going to solve the economic pressures we are seeing. The markets might also be worried about the bill not passing through Congress who rejected a similar bill last week. The general fear is that problems in the credit markets are so bad that they are casuing so many problems in the wider economy that these issues could take a long time to resolve even with a bailout package.
Economic data of late has been on the disappointing side, raising concerns about Friday’s employment situation report. Jobless claims rose to highs not seen since the aftermath of 9/11 with claims hitting 497,000 for the week ending September 26. At the same time, factory orders plummeted 4.5 percent in August, which combined with yesterday’s ISM Mfg. Index to show severe weakness in the manufacturing sector. The problem is that things are likely to get worse before they get better. Nonetheless, if a bailout package is passed by the weekend, it could provide traders with a reason to be more optimistic.
Jobs data out today. Lets see what that is like.
Until next time.
# posted by Paul @ 8:19 AM 
