Friday, October 30, 2009
GDP Stops The Slide
The Bulls came back Thursday thanks to strong GDP data. The Dow gained 199.89 to end on 9,962.58. The SPX added 23.48 points to finish at 1,066.11. We are in the green andd looking better than we did yesterday. The up move really helped our play.
Earnings announcements were abundant since Wednesday's close, but the focus Thursday was firmly on the economy. The bulls celebrated the first report on third quarter GDP, as well as another decline in weekly jobless claims.
Jobless claims for the week improved slightly, down by 1,000 claims to a level of 530,000. This puts the four-week moving average at 526,250, which is down about 20,000 compared with the year ago period. The best news in the report was the sharp drop in continuing claims, which fell by 148,000 to 5.797 million. Nonetheless, the amount of jobs being lost remains high and at a level that points to further declines in nonfarm payrolls.
Third quarter GDP provided incentive to buy today after the report showed growth of 3.5 percent in the quarter. This was above expectations for a gain of about 3.0 percent and well above the 0.7 percent drop seen in the second quarter. The GDP price index came in well below estimates at growth of 0.8 percent, 6-tenths below expectations.
Today we see data on personal income and outlays, the Chicago PMI and consumer sentiment.
Another move up today would be perfect for us!
Until next time.
Earnings announcements were abundant since Wednesday's close, but the focus Thursday was firmly on the economy. The bulls celebrated the first report on third quarter GDP, as well as another decline in weekly jobless claims.
Jobless claims for the week improved slightly, down by 1,000 claims to a level of 530,000. This puts the four-week moving average at 526,250, which is down about 20,000 compared with the year ago period. The best news in the report was the sharp drop in continuing claims, which fell by 148,000 to 5.797 million. Nonetheless, the amount of jobs being lost remains high and at a level that points to further declines in nonfarm payrolls.
Third quarter GDP provided incentive to buy today after the report showed growth of 3.5 percent in the quarter. This was above expectations for a gain of about 3.0 percent and well above the 0.7 percent drop seen in the second quarter. The GDP price index came in well below estimates at growth of 0.8 percent, 6-tenths below expectations.
Today we see data on personal income and outlays, the Chicago PMI and consumer sentiment.
Another move up today would be perfect for us!
Until next time.
# posted by Paul @ 4:57 AM 
