Daily Investment Interpretations

October 29, 2010


2010-10-29 (Friday Night):    The markets ended the day just about precisely where they started: No October tricks or treats.  The NASDAQ Composite added 0.04 points (0.0%) to 2,507.41  The Dow adjusted up 4.54 points (0.04%) to close at 11,118.49, and the S&P 500 dwindled 0.52 points (-0.04%) to end at 1,183.26. Oil was little changed at $81.45 a barrel, and Gold gained $17 to $1,360. The VIX jumped 0.32 to 21.20.
    The markets are obviously waiting for Tuesday's election, Wednesday's report from the Fed regarding quantitative easing, and Friday's unemployment report. My investment advisory service reaches this conclusion. 
    U.S. consumers nudge GDP  It's worth noting that last quarter, GDP growth came in at 2.6%, only to be revised downward to 1.7%. Still, even if this GDP growth figure is revised downward, growth will probably still be positive. 
    If U. S. industry is still growing or holding its own with one in four men in the working population unemployed or underemployed, it would seem to me that corporations can operate profitably without anything like full employment. And that suggests to me that unemployment in the United States is an enduring sort of problem. Granted, revenues will be less than optimum if U. S. consumers don't have jobs and can't buy goods and services, but it's my understanding that international markets comprise about 50% of the revenue streams of Fortune 500 companies, which account for more than 90% of U. S. GDP.
    The titles below are self-explanatory.
    Yes, the U.S. economy growing — just not fast enough  
    Consumer sentiment falls  
    Chicago purchasing climbs  
    How Washington could create jobs...  infrastructure, aid to states, R&D spending by private companies
    Nutting: Stimulus worked, but not that well  
    Emerging markets inflows slow  
    Delamaide imagines an alterna–tea party  This is a "how-it-should-be" portrayal of the speech that Darrell Delamaide believes President Obama should make..
    U.S. retirement system ranks 10th — out of 14  This is another of those benchmarks in which the U. S. appears to be falling behind other Western nations.
    Wall St. banking on GOP to ease new rules  Wall Street is looking to the Republicans to sabotage  the recent financial reform legislation (weak though that legislation may be) so that its investment banks can continue to fleece the American public.