Thursday, November 06, 2008
Obama Barmy!!!
It's been a few weeks since I last posted. When we don't have a play on the enthusiasm to type always wanes...even more so when we are in a market which is moving up and down on a basis that no one can seriously comment!!!
The reason for the post is to acknoweldge that yesterday Barak Obama was elected the first black President of the USA. Notwithstanding the fact that the man has never run a company, a public organisation, a county or a state, he will be running the USA!! It seems that the whole mood of the world has been lifted!!
Anyway back to the Economy and Obama has a toughie on his hands. The SPX saw a rally of late regained the 10,000 mark. However this level is now looking like resistance and the SPX fell hard yesterday losing 52.98 points to 952.77.
The U.S. economy is in a recession and there is a lot of work that has to be done by the Obama administration. Economic data shows the weakness in the economy with reports on the jobs sector weak yesterday morning and the ISM Non-Mfg. Survey also falling sharply.
The ISM Non-Mfg. index fell to 44.4 in October, which was below expectations for a reading of 47.5. A reading below 50 is considered a state of contraction, but at least the services sector hasn’t fallen off as far as the manufacturing sector. Within the report, the employment index fell more than three points to 41.5, which is another reason to expect a weak jobs report on Friday.
The ADP Employment report showed a decline of 157,000 private payrolls in October. This is a weak figure, but about what economists expected. When the loss of government jobs is included, expectations are for nonfarm payrolls to fall by about 200,000!!
Things are bad. They are also still very volatile so we are need to be careful.
Until next time.
The reason for the post is to acknoweldge that yesterday Barak Obama was elected the first black President of the USA. Notwithstanding the fact that the man has never run a company, a public organisation, a county or a state, he will be running the USA!! It seems that the whole mood of the world has been lifted!!
Anyway back to the Economy and Obama has a toughie on his hands. The SPX saw a rally of late regained the 10,000 mark. However this level is now looking like resistance and the SPX fell hard yesterday losing 52.98 points to 952.77.
The U.S. economy is in a recession and there is a lot of work that has to be done by the Obama administration. Economic data shows the weakness in the economy with reports on the jobs sector weak yesterday morning and the ISM Non-Mfg. Survey also falling sharply.
The ISM Non-Mfg. index fell to 44.4 in October, which was below expectations for a reading of 47.5. A reading below 50 is considered a state of contraction, but at least the services sector hasn’t fallen off as far as the manufacturing sector. Within the report, the employment index fell more than three points to 41.5, which is another reason to expect a weak jobs report on Friday.
The ADP Employment report showed a decline of 157,000 private payrolls in October. This is a weak figure, but about what economists expected. When the loss of government jobs is included, expectations are for nonfarm payrolls to fall by about 200,000!!
Things are bad. They are also still very volatile so we are need to be careful.
Until next time.
# posted by Paul @ 5:05 AM 
