Sunday, July 31, 2005

AP Story from tonight "Wall street hopes data keeps rally alive"

The rally could continue as long as the economy still shows signs of growth and corporate earnings remain healthy. Even then, however, an overly strong economy could raise concerns about the Federal Reserve's interest rate policy. Steady economic growth virtually guarantees a continuation of the Fed's slow, steady rate hikes through the end of the year. If the Fed goes too far, the economy's growth could see an abrupt slowdown as business and personal loans become more expensive.

Last week, the Dow fell 0.1 percent, while the S&P edged 0.04 percent higher and the Nasdaq gained 0.23 percent.

ECONOMIC DATA
The Labor Department's job creation report, due Friday, is a proven market-mover, and has the potential to single-handedly keep the summer rally afloat -- or halt it for good. Economists predict the economy will have created 183,000 jobs in July, up from 146,000 in June.
This number has been difficult to predict in recent months, however, so investors will likely be somewhat lenient should the number be modestly higher or lower. In fact, a slightly lower number could be beneficial, reinforcing the notion that the economy continues to grow, but not at a pace that would trigger inflation. (woof what idiots)

**Of course the damn number is difficult UNLESS you look at Net Birth Data as WE DO! It is set to take away maybe 80K jobs!!!!! if pattern holds.

Is why a BIG MISS is very very possible IMHO but you NEVER know for sure.

Last month it ADDED 180K!!!!!! and we STILL only ended up with....146,000 you with me? Take away the miracle jobs and it would have shown a loss of 40K !!

WHAT will happen if you DON'T add but SUBTRACT JOBS? with a DOA Help Wanted index of 38? We will see won't we?


D

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