Thursday, September 17, 2009
Still Going Up
The Bulls just keep on coming with the major market indices maing their eighth gain in nine sessions Wednesday. The Dow added 108.30 points to a level of 9,791.71. The SPX rose 16.13 points to 1,068.76. We are in the green but would like to see some down movement soon.
On Tuesday, industrial stocks led the way and this continued Wednesday following the release of the industrial production report for August. This report showed a gain of 0.8 percent, a tenth higher than expected. This was the second straight month of gains following eight months of declines. Recent data points to an end of the recession in the manufacturing sector, although production is down 10.7 percent year on year. There are concerns that the "cash for clunkers" program has been the reason for recent gains in industrial production.
Inflation pressures might become an issue down the road when the global economy starts to see marked improvement. However, at the moment, pricing pressures are not a worry. The consumer price index matched expectations for August, rising 0.4 percent overall and 0.1 percent at the core. This puts the headline figure down 1.4 percent year on year with the core rising 1.5 percent.
Until next time.
On Tuesday, industrial stocks led the way and this continued Wednesday following the release of the industrial production report for August. This report showed a gain of 0.8 percent, a tenth higher than expected. This was the second straight month of gains following eight months of declines. Recent data points to an end of the recession in the manufacturing sector, although production is down 10.7 percent year on year. There are concerns that the "cash for clunkers" program has been the reason for recent gains in industrial production.
Inflation pressures might become an issue down the road when the global economy starts to see marked improvement. However, at the moment, pricing pressures are not a worry. The consumer price index matched expectations for August, rising 0.4 percent overall and 0.1 percent at the core. This puts the headline figure down 1.4 percent year on year with the core rising 1.5 percent.
Until next time.
# posted by Paul @ 6:21 AM 
