Seeking Alpha

Natural Resourc...'s  Instablog

Natural Resource Specialist
Send Message
Avid Resource Sector Stock Writer!
My blog:
  • Dow High Are We Mistaking It For Growth In The US Economy? 0 comments
    Mar 10, 2013 5:58 PM | about stocks: TZW, DVY

    The markets are on the move. Wall Street is placing the fiscal turmoil behind - the Dow jumped more than 2% this week to a fresh record high amid an increasingly positive view of the international market. The Dow rose for its sixth evening in a line on Fri, closing in record land for the fourth-straight session.

    This week, the Dow jumped 2.2%, the S&P 500 increased 2.2% and the Nasdaq advanced 2.4%.

    According to initial calculations, the Dow Jones Industrial Average risen 0.46%, to 14396, the S&P500 to 0.44%, leveraging 1551 and the Nasdaq Composite increased 12.3 factors, or 0.38%, to
    3244. Reaching a five-year high, and less than 1.3% off its record close.

    The Department of Labour said non-farm payrolls increased 236,000 in February, pushing the unemployment rate down from 7.9% to 7.7% -- the lowest since Dec 08'. Economists were anticipating an improve of 160,000 jobs using the price holding steady at 7.9%.

    Michael Gapen, an economist at Barclays mentioned that as the labour industry is seemingly on "solid basis... the power in the Feb payroll amounts was offset by downward changes to Jan." Certainly, that metric was modified lower by 38,000. There has been concerns lately about when the market begins picking up steam whether the Fed may start tapering off quantitative easing.

    Steven Ricchiuto states "Although there appears to be no reason for the acceleration in payrolls, the broad based nature of the report will give the growth bulls a lot to talk about" Nevertheless, current claims by Chairman Ben Bernanke and Vice Chairman Janet Yellen have indicated that the central bank views the market as still delicate enough to demand competitive easing.

    On the financial front, a study from the Trade Division revealed wholesale stocks jumping 1.2% in Jan from the month before, a much larger leap compared to 0.3% anticipated. Barclays increased its outlook of first-quarter economic growth 0.3-percentage indicate 1.9% on the information.

    "Although the heading nonfarm payrolls surpassed the industry consensus outlook appreciably in Feb, we believe the mixture of the shaky monthly route of work development and a decrease in the joblessness price for the 'wrong reasons' are unsatisfying to the Fed," Aichi Amemiya, an economist at Nomura wrote to customers.

    "Markets are responding to good information from America yesterday, as US banks exhibited their strength in the most recent stress tests," Brenda Kelly, market analyst at IG Index in Birmingham.

    Opinion also got yet another rise after the closing bell on Thurs if the Federal Book released the outcomes of its tension tests on the biggest U.S. banks. One of the banks that obtained passing marks were the country's four largest: J.P. Morgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC).

    China saw its exports rise at a year-to-year pace of 21.8% in Feb, only somewhat under the 25% increase the year before. Economists anticipated a reduced reading of 8.1% annual growth.
    In commodities, petroleum prices edged higher. The standard U.S. contract rose $1.80, or 0.43%, to $91.95 a barrel. Wholesale New York Have gas jumped 2.6% to $3.204 a quart. Gold was up somewhat to $1,577 a troy oz.

    Are we perceiving this growth in the economy as a bubble, or will it keep it's pace?

    Themes: Dow Jones Stocks: TZW, DVY
Back To Natural Resource Specialist's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Confused about the DOW!
    Mar 10, 2013
  • Currently writing an article about TEMBO Gold (TSX:TEM)
    Feb 14, 2013
More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.