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Economic News Week: February 21,2011

By Tony Stevenson/SWBC Mortgage

The DOW continued its upward climb last Friday and ended at 12,391 which marked three straight weeks of gains.  Also noted is the fact that so far, the DOW has only been down  just three days in February since this past Friday.   Not too shabby given the turmoil overseas in Egypt and the like.  Especially now that China seems to be tightening as they are fixing to raise rates.  A very watchful eye on Libya and the oil and gas markets will be one of the major market movers  worldwide this week.  U.S. FED Chairman-Ben Bernanke spoke at the G20 meeting recently and  rebutted foreign critics who say the U.S. central bank’s easy-money policies are causing  inflation and asset bubbles  abroad.   U.S. Retail Sales were up 0.3% last month in January for the seventh straight month in a row. The Philly Fed Index which is a manufacturing report in that region jumped in February to its highest level since January 2004. This increase was stronger than expected.  The Philly Fed index is watched closely by economists and traders for clues it might share about the state of the nation’s manufacturing sector.  As  an improving economy brings fears of inflation, “it’s too early to panic about inflation,” said Nigel Gault, chief U.S. economist at HIS Global Insight. “There won’t be an inflationary spiral unless wage  inflation picks up,” he continued.   And wages are not likely to rise anytime soon.

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February 21, 2011 - Posted by | Fredericksburg TX

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