Monday 2 August 2010
Monday morning hipper ventilating booster news!
Especially these days, As the market volatility seems more likely to fluctuate because of sentimental values instead of fundamental values, you need to keep a close eye on early morning market news.
This morning the 2 August 2010, the ISM report ( index supply management) witch tracks previous month manufacture productivities, drop from 56.2 to 55.5. Economists had expected the index to drop even lower, at 54.0. Therefore, the Dow Jones Industrial kicked off the month of August on a positive note gaining more than 160 points.
When ISM report values are under 50.00, this tends to indicate an overall slowdown in the economy and a when values are over the 50.00 mark, it’s an indicator of economy growth.
It’s really hard to forecast how the market will perform, if you take a closer look at previous indexes. You will notice that July’s report, represent the lowest level since last December. Still, we are growing and today’s market is revealing a lot of enthusiasm, may be a little to much to my opinion. If you are speculating, it’s a good time to reap the profits, and wait for Friday’s news as Unemployment Rate, Hourly Earnings, Average Workweek, and Consumer Credit might just flush this morning excitement.
Wednesday, August 04 2010
Stock Market: As steady as she Goes!
The Dow Jones Industrial climbs slightly on ISM service sector who’s report index for the month of July has rose from 53.8 to 54.3, a better than estimated prediction of 53.00 from economist.
Automatic Data Processing (ADP) is company offering payroll services to over 570,000 companies in the USA. It’s a great indicator on how the private employment sector is doing. Wednesday morning ADP Report for the month of July indicates a modest increase in hiring. Employers hiring shows no evidence of real growth acceleration, as figures for the past 6 months indicates a rise of only 37,000
Thursday 05 August 2010 Headline news is focusing on a slew of retails reports and jobs.
Down Jones slightly lower, retails reports more or less sluggish. The consumer is definitely more cautious as American are in a saving mood.
The initial jobless claims up 19 thousand, market muted reaction is somewhat surprising as investors are looking at fresh data, my guess is investors are just postponing until tomorrows payroll numbers. Another interesting theory to harbor is the bench mark expectation on the jobless claims and numbers are actually very low. Predicted estimates for tomorrows jobless claim number is around 65 thousand.
Obviously, tomorrow is a big worry, if numbers come way beneath expectation, a lot of people may throw in the towel, and we may see a huge sell off.