Economic News Week: October 11, 2010
By Tony Stevenson
The DOW closed above 11,000 for the first time since May after reports that the Fed will move to stimulate economic growth after their next meeting in November. The unemployment rate remained the same at 9.6% after numerous economists had predicted an uptick. Private sector jobs were up 64k. Still, these are not the numbers needed for a fast growing economy but, at least they were not in the opposite direction. “Market soars on a report of service industry growth”, was a headline in the San Antonio Express News last Wednesday. The Institute for Supply Management reported that its index of business activity of U.S. service companies expanded again last month at a far faster pace than analysts were expecting. The ISM’s measure of service companies includes a wide range of industries including finance, health care, and trade. Inventory and Sales rose at the wholesale level for August as well. Plus, September Retail Sales rose 2.6% as shoppers opened their wallets unexpectedly. “I think the doom and gloom that many of us anticipated for the quarter were unfounded,” said one analyst. Mike Niemira, another chief economist said he expects holiday sales to rise 3%. Finally, ‘Pending Home Sales’ rose 4.3% for August according to the National Association of Realtors. All positive economic numbers despite what the naysayers are exclaiming!
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