U.S. Stocks Advance After Jobless Claims Report, Retail Sales

[NJmaverick]

U.S. stocks rose, with the Standard & Poor’s 500 Index posting its first three-day rally since April, as a drop in jobless claims and higher-than-forecast sales at some retailers bolstered confidence in the economy.

Caterpillar Inc. and Alcoa Inc. climbed at least 0.9 percent after the Labor Department said initial jobless claims decreased by 21,000 to 454,000 in the week ended July 3, lower than the median economist estimate in a Bloomberg survey. J.C. Penney Co. and Limited Brands Inc. surged more than 1.9 percent after reporting June sales that beat estimates.

The S&P 500 climbed 0.6 percent to 1,066.98 as of 9:33 a.m. in New York and European equities advanced after the International Monetary Fund increased its forecast for global economic growth. The Dow Jones Industrial Average rose 51.84 points, or 0.5 percent, to 10,070.12.

“It’s very encouraging,” said Stanley Nabi, New York- based vice chairman of Silvercrest Asset Management Group, which manages $9 billion. “The combination of better-than-expected jobless claims and good numbers from some of the largest retailers removed some of the gloom from the market. It was also positive to see the IMF raising its estimates. I think we’re going to have very strong second-quarter earnings. That should support rising stock prices.”

http://www.bloomberg.com/news/2010-07-08/u-s-stock-index-futures-decline-after-rally-symantec-retreats-in-europe.html

[Dawgs]

1. Yeah, but...

:)

[Mudoria]

2. Shouldn't be long before the doom and gloomers

show up to piss all over your post. I don't think they will be happy unless the country collapses in economic ruin.

[NJmaverick]

5. To some degree the economy is affected by psychological issues

If people believe in the economy and have confidence, they tend to behave in a manner that spurs economic growth and prosperity. If they are fearful then the opposite happens. So those trying to tear down the economy and undermine people's confidence are certainly not helping the situation.

example of the behavior I am talking about:

A confident and optimistic business owner/manager hires more people and buys more goods to improve production

A confident consumer spends more money buying goods and services

Investors take money out of useless investments like gold and other commodities and put it into stocks and other productive investments.

[cbdo2007]

3. should read "U.S. Stocks Advance After They Decline"

Sure they are advancing but they are only advancing after a decline which only happened after a big advance which also happened after a decline. This day-to-day market watching really is quite pointless.

[HughMoran]

4. Several day trends go beyond 'day to day' and get people nervous

Do you ultimately know which direction the market is heading?

Do you?

[cbdo2007]

7. Yes, I know exactly which direction the market is heading.

It's heading up and then down and then up and then down. Then after that it's going to go up and then down and then up and then down.

That's what it does and has done for a hundred years and is the only sure thing anyone ever knows about the market - it fluctuates.

[HughMoran]

8. Guess you have no stake in it

That's fine. I'll ignore your comments on this topic henceforth.

[cbdo2007]

30. *laughs* ha haha - I have plenty of stake in the market but that doesn't

change the inevitible. Even some of my favorite companies I'm invested in go up and down and up and down all the time but it's typically no reason for alarm or celebration.

That's the point. The market fluctuates on a day-to-day, week-to-week, month-to-month basis but over the long haul it's going to go up. The day to day fluctuations don't matter, especially for those of us with a "stake in it" because that's why we're in it to begin with - it's always going to recover and go higher.

[Peacetrain]

6. Liking that report! K&R

Thanks for the good news.. just what I need as I head out.. starts my day right :hi:

[flyarm]

9. and the stock market and Dow going up helps our economy and jobless how??

are some of you really that naive? or just downright dumb?

Do any of you really understand the DOW?

and how little it effects joblessness..or the economy?

[NJmaverick]

10. Let me see if this "downright dumb" person can give it a stab

those living off of 401Ks see increased monies and they end up spending more money which spurs the economy and spurs jobs.

those with investments in the stock market increase their spending as their investments grown and there spending increase the number of needed jobs

Then there are those that will take their money out of economic hurtful investments like gold and commodities and put their money into economic healthy investments like stocks and start up companies. New companies and ventures that create jobs and economic prosperity

There is also the physiological aspect where a rising stock market give consumers more confidence and they spend more, managers and owners also feel more optimistic so they hire more people and buy more goods and services so they can sell more


well that's just a few of the good things, I am curious though your comments imply that you believe you have a superior understanding of the DOW. What is the bad news we should be taking from an increase in the DOW averages? Why is that a bad thing?

[flyarm]

14. gIVE ALL THE STABS YOU WANT..IT MEANS LITTLE TO NOTHING!

go ahead and pretend you know this means something..it means jack shit..

I'll tell you what it means..all my neighbors that have seats on the exchange will get a little bigger bonus so they can put a 400,000 dollar pool in their back yard rather than a 300,000 dollar pool in their back yard when their bonus's come! Or instead of a million dollar beach house ..they can buy a 1.5 million dollar beach house now with their bonus money!

Wake the fuck up..this has little to nothing to do with the state of our economy!

They bummp up the exchange so the big boys can con the little guy into putting some more of their cash into the market so the big boys can cash out!

( pssss..all my neighbors own seats on the exchange..don't waste your breath trying to convince me of your so called knowledge of the Dow or the exchange! Just keep trying to convince the people who have no knowledge of the exchange of your bullshit!!)

[NJmaverick]

16. I see a great deal of anger and rage but little in the way of fact

or any indication of knowledge of Economics or the workings of the Stock Market. Just my opinion, but rage and insults are a poor substitute for fact and reason.

Want to know something really funny? My college economics professor was so clueless that he gave me an A in his class. It's remarkable how many "downright dumb" people you have to deal with.

[flyarm]

34. You see wrong..No No rage and no anger..

frustration by the people who need help the most buying into the total bullshit!

I sit every weekend with the people who run the Market ..and watch them laugh at you, while sipping their martini's at their multi million dollar beach homes and on their yachts!!

But keep dreaming ..You just make them wealthier! And happier.

[A HERETIC I AM]

15. It's clear the only people on DU that really understand the Dow...

are the regular posters on the SMW thread and you.

Right?

No one on this board except the chosen few have any real clue about the economy, or at least that's the daily message.



"Do any of you really understand the DOW?"


No. Why don't you explain it to us great unwashed.



Sarcasm smiley not needed.

[NJmaverick]

17. oops

oops

[A HERETIC I AM]

19. ummm... NJ? I was responding to Flyarm, not you.

And if calling it like I see it is a "strawman" then so be it.

[NJmaverick]

20. Oops, my bad

:dunce: :dunce: :hi:

[HughMoran]

29. Only those with psychic powers can predict the future

Us mere mortals use things popularly known as 'statistics' and 'indicators' in an attempt to estimate the direction we're heading economically.

Others just get outraged at everything.

[KeyWester]

11. k&r

[Scurrilous]

12. Good news.

K & R :thumbsup:

[DCBob]

13. but but but Krugman said we are in the "midst of a depression"..

or was that yesterday?

[NJmaverick]

18. Actually Krugman said we MAY be in the midst of a recession

That was distorted for propaganda purposes into we ARE in the midst of a recession.

[DCBob]

21. Yeah, I guess thats' right but he should be careful with his use of the "D" word..

That does more harm than good.. imo.

[NJmaverick]

22. I think Paul is frustrated by what he feels is a Hoover like response

by Europe and the rest of the G20. He feels that austerity will only exacerbate the economic problems.

[DCBob]

24. Well thats a judgement call.. you could also argue it we dont implement austerity measures..

we could be headed for a total economic collapse, even worse than the great depression, when we are overcome by the massive size of our debt. See I can use hyperbole too.

[NJmaverick]

25. I see the "hyperbole" but not the "too" part

Maybe you could clarify

[DCBob]

26. Krugman not you..

He may turn out to be correct but I think its irresponsible for someone like him to make such rash statements... it might be self-fulfilling.

[NJmaverick]

27. I agree with you to some extent. Although I find that in general Krugman speaks up

only at what he feels are turning points when policy is made. Once the decisions are made I don't seem him generally talking down the economy or trying to generate panic and fear.

[DCBob]

31. Yes, I have seen him do that too.. I just think he's gone a bit over the top this time..

Scaring the public with reckless warnings of an impending depression is not the appropriate way to influence public policy. I am sure the administration's economists are looking at the same data Krugman is looking at they have come to different conclusion.

[NJmaverick]

32. Obama's people seem to be leaning toward Krugman's interpretation

however the Republicans and conservative Dems are blocking nay further stimulus efforts

[DCBob]

33. I dont think they think a depression is heading our way without a new round of stimulus..

and even if they did they certainly would not say it publicly.

[Johonny]

23. I blame Obama

[HughMoran]

28. Of course

:D