Stocks are still looking for direction. Dow is down a little with advancers slightly ahead of decliners & NAZ up a little. The economic news was negative. Employers cut jobs by 80K last month, not as bad as some feared but still a solid minus. The national unemployment rate rose from 4.8 to 5.1%, another indication that recession if not here is around the corner. These figures from the Labor Depart underscored the damage that a trio of crises, in housing, credit & financial sectors, has inflicted on companies, jobseekers and the economy as a whole. The unemployment rate was the highest in 2½ years (a period following destruction from hurricane Katrina). Gas prices reached a record $3.30. With oil over 100, prices are poised to go higher
Yesterday, San Francisco Federal Reserve President Janet Yellen warned that "economic prospects remain unusually uncertain" & continued that the FED must be ready to act in a timely manner to spur the economy to keep it out of a recession. Yellen said that the slowdown started in the Q4, when the economy "slowed to a crawl." The housing downturn is one of the major risks to the economy & it isn't likely to improve until next year at best. Gloomy thoughts!
Next week, Alcoa (AA), will be the first Dow company reporting earnings. This will give an early signal about Q1.
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