Daily Investment Interpretations

September 2, 2010

2010-9-2 (Thursday) The markets rose again today on more good news:
    U.S. jobless claims decline,  
    Pending-home-sales gauge climbs 5.2%,
    Sales top expectations, and  
    Manufacturing is a surprising bright spot.
    The NASDAQ Composite added
23.17 points (1.06%) to 2,200.01. The Dow gained 50.63 points (0.48%) to close  at 10,320.10, and the S&P 500 increaseded 9.81 points (0.91%) to end at 1,090.10. Oil closed at $74.91 a barrel, while Gold ended the day at $1,253. The VIX dropped 0.7 to 23.19.  
    Also in the news: Record-low mortgages and U.S. second-quarter productivity decline steeper than thought
    Darell Delamaide warns of the radicalization of the right that's taking place Delamaide: Polarization not funny. He writes:
    "Whatever you might think of Glenn Beck's messianic aspirations, it's clear that political polarization is reaching a new pitch in this midterm election campaign. Beck's rally in Washington last weekend drew an estimated 87,000 people, according to those old-fashioned mainstream media relying on an aerial audit -- about the same as the attendance at a Washington Redskins' home game. But that didn't stop the radio and television personality from claiming a crowd of half a million and something akin to the divine revelations Moses got from the burning bush. It will be interesting to see what Beck now does in his new role as latter-day prophet. In the meantime, Sharron Angle -- a candidate so extreme and uninformed that she makes Sarah Palin look like a paragon of political moderation and wisdom -- is in a statistical dead heat with Senate majority leader Harry Reid in the campaign for one of Nevada's Senate seats. In fact some very serious people have started to express concern about the political climate in this country, using words like 'sinister,' 'fascism," and "revolution.' These are money people, not pundits or blow-hard politicians."
    He concludes, " ...with 'virtually no political center to anchor consensus' for much-needed reform of the economy, as El-Erian put it, this type of ultra-polarization is no longer something we can afford to laugh at."
    Stock futures are down slightly tonight.