Stocks Fluctuate on New Jobless Claims
September 2, 2010
The Dow Jones Industrial Average was down just a bit, the NASDAQ was up just a bit, and the S&P 500 was up very slightly. New jobless claims dropped to 473,000 for last week. Data expected to be released next week will show unemployment inching up from the current estimate of 9.5%. Manufacturing was up for the months of July and August, but it was not high enough to help the private sector create enough jobs to reduce the unemployment numbers.
The housing market is expected to show even less growth, according to the National Realtors Association. In August, reports came out that showed the fact that sales of existing homes to be at their lowest level since 1995, and construction of new homes was down to its lowest levels since the government began collecting data in 1948.
Retail information is not out yet, but it is expected to show that retailers struggled to increase their sales numbers during the August back to school shopping season. If this is the case, it is a strong indicator that consumers are still very worried about their jobs and finances.
Traders are expected to remain cautious today, waiting to see if the manufacturing uptick is an aberration in the trend. The economy is still in a very dark place, with the country still in a deep recession, arguably the worst since 1982. If September’s data shows that the economy has contracted and the recession is just as bad, or worse, than the recession of the early 1980’s. Jobs did not grow quickly enough to reduce unemployment in any way. Next week’s data is expected to show highly disappointing results for the economy.
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Post Written By: Market Updates
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