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FreeMarkets (92.91)

La La Land

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July 29, 2010 – Comments (6)

Unemployment claims come in at 457,000.  The Fed Chief admits that the economy is "uncertain".  The Beige Book shows weakness or stagnation throughout most of the country and the stock market continues to show strength.

I see no reason why a corporation sporting strong earnings and projected strong future growth shouldn't go up, but the market as a whole is heading in the wrong direction.  I will never predict (except jokingly) short term market moves, but if by the end of September the S&P is above 1050 I will be very surprised.  

Today, at least with the preliminary run up, the stock market can only be in one place and that's "La La Land".

6 Comments – Post Your Own

#1) On July 29, 2010 at 10:04 AM, outoffocus (22.80) wrote:

I just love headlines like this:

 Stocks Climb on Earnings, Drop in Jobless Claims- AP

"Drop" in jobless claims?  I think the number went from 464000 to 457000. A mere 7000 drop in claims. This whole market and the media who reports on it is a joke.

 

 

 

 

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#2) On July 29, 2010 at 10:25 AM, FreeMarkets (92.91) wrote:

Not only that, but each weeks numbers are revised higher (last weeks went up 5,000) plus the numbers aren't raw, but manipulated to deal with employment trends so no one knows what the real numbers are.  590,000 could have filed last week.

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#3) On July 29, 2010 at 10:48 AM, MoneyWorksforMe (< 20) wrote:

What we do know is that the amount of initial claims, regardless of its veracity still remains well above the level it needs to be in order to see declines in real unemployment. And more importantly this number has made NO downward progress since October of last year. Bulls currently claim unemployment is a lagging indicator, but look at the healthy and tremendous decline in 1st time claims beginning around April of 09 until about September of 09. Then notice the "brick wall" claims hit after that period. Since then job growth has been non-existent.

http://www.market-barometer.com/initial_jobless_claims_chart.gif

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#4) On July 29, 2010 at 11:18 AM, NDimensionalDino (97.99) wrote:

What I've been reading is that companies are posting better than expected profits largely due to cost cutting.  But not all cost cutting is sustainable.  Predictions based upon this point to problems with future earnings for many companies.  Either main street starts to recover, or wall street will begin to falter. 

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#5) On August 04, 2010 at 8:15 AM, Melaschasm (62.36) wrote:

I expect corporate profits to remain high for all of 2010.  With the expectation that taxes will be higher next year, it makes sense to cut costs, and use accounting tricks to show profits this year. 

 

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#6) On August 04, 2010 at 8:30 AM, ragedmaximus (< 20) wrote:

numbers numbers mumbo jumbo look around see all the empty businesses and stores going out of business .States going broke cant pay state workers,this week fed employees asked to work longer before retirement.talk of govt taking ira 401k with promise to pay yor ss after they raise pay date and hopefully youll be dead by then is what they want wake up fools quit looking at your july gains and 2009 gains this is 2010 and 2011 is not going to be good.better to sit out the next crash.it's up tp you fools

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