Daily Investment Interpretations

September 8, 2010

2010-9-8 (Wednesday) The markets rose somewhat today on reassuring news concerning Europe's sovereign debt situation Also, the "beige book" minutes from the last Fed meeting reveal that the economy is still growing, although at a slower pace than it grew this spring: Beige Book: Growth slows. The NASDAQ Composite regained 19.98 points (0.9%) to 2,228,87. The Dow rose 46.32 points (0.45%) to close  at 10,387.01, and the S&P 500 added 7.03 points (0.64%) to end at 1,098.87. Oil closed at $74.59 a barrel, while Gold ended the day at $1,258. The VIX dropped 0.55 to 23.25
    Michael Ashbaugh concludes that the markets will remain range-bound for a while longer: Cooling their heels.
    The markets greeted President Obama's new fiscal stimulus bills with a yawn: Full text of president's speech in Ohio.
    SF Fed official says double dip 'highly unlikely'. This sounds like an important article. John C. Williams, the San Francisco Fed official quoted in this piece, is the director of research for the SF Fed. "Williams says a double-dip recession is "highly unlikely" and expects the economy to grow between 3.5% and 4% in 2011. He added that inflation has fallen surprisingly little given the experience of past recessions, which he attributes to anchoring of inflation expectations, and therefore said the risks of sustained deflation or unacceptably high inflation 'appear remote.'" 
    One problem with rosy projections is that so far, jobs aren't being created fast enough to keep the unemployment rate from rising, much less reducing it. Also, sooner or later, unemployment benefits are going to run out. 
    Unilever's oil-from-algae deal. This is of great interest to me because it's an intriguing way to harness solar power. A cost-competitive source of carbon-neutral biodiesel would allow us to utilize our existing automotive technology and our existing petroleum-based infrastructure to power all our vehicles. "The challenge for Unilever is whether algal oil can be produced in quantity at a cost competitive to that of naturally harvested oils, the WSJ said. And further testing of algal oil is needed before it's used in products, the paper said." On the other hand, a lot of venture capital has been poured into algae-produced biodiesel and so far, it's been a bottomless sinkhole.
    Job openings tick up in July  
    10-year yield falls to 20-month low at auction