Sputtering Stocks Close with a Gain
Sputtering Stocks and Economy with a Gain Today
August 27, 2010
Dismal GDP numbers out today show that the economy is faltering. The Gross Domestic Product numbers show that American productivity is down. Ben Bernanke, Fed Chairman said today that the economy is sputtering, but stressed that the Fed has the tools to ensure continued growth. The Dow Jones Industrial Average was up 145 points; the NASDAQ was up 29.5 points, the S&P up 14 points at closing today.
Rob Russell, President of Russell and Company said, “The market is starving for something decent to look at.” In response to the rise of stocks today after the GDP showed extremely disappointing, yet still somewhat lower than had been predicted. Russell also said, “None of this is good information, but the GDP revision was better than what people were looking for, and the fact Bernanke outlined some option about what the Fed could still do, and is willing to do, helped an uptrend.”
Stocks did fall briefly, after chipmaker Intel said its 3Q revenue would come in lower than it had previously predicted. This unnerved already tense and frazzled investors. Trading has also been choppy this week due to poor jobs numbers, and an unemployment rate holding at an average of 9.6% nationwide. Investors are also wary after very disappointing housing numbers, which show that the housing slump is not over. Housing numbers are at their lowest since 1995, leading some analysts to wonder if the American Dream of home ownership is gone now.
The annual meeting of central bankers, held in Jackson Hole, WY listened to Fed Chairman Ben Bernanke as he touted what the Fed could still do for the economic recovery, and what it was willing to do. It is uncertain when, or if, jobs will return any time soon to the American market, and this is keeping investors extremely wary.
Related posts:
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- Stocks Still Down
- Stocks Post Gains for Second Day in a Row