Posted on 09/01/2010 1:31:09 PM PDT by SeekAndFind
NEW YORK — Stocks jumped Wednesday after surprisingly strong growth in U.S. and Chinese manufacturing allayed some of the worries that had been building over the global economy in recent weeks.
The new reports snapped a string of disappointing economic data that sent stocks slumping in August. The Standard & Poor's 500 Index, the benchmark most widely used by professional investors, lost 4.7 percent in the month, its worst August performance since 2001.
The Dow Jones industrial average jumped 221 points on the first day of September. Broader indexes also rose more than 2.5 percent. With investors pouring into stocks, Treasury prices fell and interest rates rose.
The Institute for Supply Management said manufacturing activity in the U.S. rose in August, in contrast to regional reports from recent weeks that pointed to a slowdown in growth. Economists had expected a decline.
"It gives up hope that things may not be as bad as they seem," said Zahid Siddique, an associate portfolio manager at Gabelli Equity Trust Inc.
Some analysts have said in recent weeks that the slowdown in economic growth could eventually push the country back into recession. Wednesday's manufacturing report, at least temporarily, reduced those fears. Industrial stocks got a big lift from the strong manufacturing report, including companies such as General Electric Co. and Eaton Corp.
Daniel Penrod, senior industry analyst at the California Credit Union League, said manufacturing reports have become increasingly important because they are a leading indicator for whether companies might start adding new jobs. Investors will be closely watching the Labor Department's monthly employment report on Friday.
(Excerpt) Read more at google.com ...
Extraordinary manipulation today. Straight up then plateau. I am not in this market because it is NOT a market. Its a fool’s game...
SEE ALSO HERE :
TITLE : US Stocks Up Sharply On Bullish Manufacturing Data
NEW YORK (MarketWatch) — Investors put a fresh stamp on September, piling into stocks to start the traditionally volatile month on a positive footing.
The market rallied on a surprisingly strong picture from the manufacturing sector, helping erase gloomy jobs data.
The Dow Jones Industrial Average surged 249 points, or 2.5%, at 10263 in midday trading, while the Standard & Poor’s 500-stock index added 2.8% to 1079 and the Nasdaq Composite rose 2.9% to 2176.
Wednesday’s giddiness follows a dismal month that saw the Dow drop 4.3%, its worst August in nearly a decade.
It comes after U.S. manufacturing activity expanded in August for the 13th straight month, with the ISM manufacturing PMI defying expectations to rise to 56.3, from 55.5 in July. The encouraging numbers were fueled by strong employment and production data.
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According to Marketwatch...
” the number of planned layoffs fell 17% in August from the month before, to the lowest monthly total since June 2000, according to global outplacement firm Challenger, Gray & Christmas. “
WW3 could break out and the Market would go up!
Wow! Sounds like Challenger, Gray & Christmas might have to start laying people off!
I knew a rescue was on the way, but I think the players got their system screwed up. Gas prices rose sharply yesterday, when they should have gone down in response to the market, so now they will have rise a little more, along with groceries. But hey, as long as the market is above 10,000, all is well. Our bailout and stimulus tax money is keeping the market safe.
More AP lies. Car companies are doing really great. UAW/Obam/GM sales are down 25%.
RE: UAW/Obam/GM sales are down 25%.
The strange thing is Chrysler’s sales are UP for August. People seem to be guying the Jeep Grand Cherokee ( a gas guzzler if there ever was one ).
See here : http://www.washingtonpost.com/wp-dyn/content/article/2010/09/01/AR2010090103570.html
Soros sucker punches again, he buys low forcing the market up then sells high forcing the market down.
What a POS. The transmission were lousy on them before the UAW ran the show at Chrysler.
I am in the market because the time-tested way to make money in the market is to buy on pessimism and sell on euphoria. I will continue to buy as long as people like you (and this is not a criticism) are out of the market and on the sidelines, predicting doom and gloom; I will hold when the masses start buying back into the market; and I will sell when there is no one left on the sidelines and the talking heads are predicting DOW 50,000, and the investment sheeple are talking about the "new fundementals."
If Obama doesn’t succeed in totally destroying the economy by then, I think a real recovery may start when the Republicans regain control of Congress-watch the Dow spike on November 3. It’s the only ray of hope there is for small business.
No, they're not lies. It's true that auto sales are down, but the general manufacturing sector is continuing to grow. That's a good sign for the rest of the economy as manufacturing (along with mining, drilling and farming) is at the core of all wealth creation.
You can rest easy, though. Most of the improvement was in capital goods and those don't count for much in the GDP which gives overwhelming weight to consumer goods expenditures. So, if you're worried that Obama will get a lift from the news it's not likely until manufacturing employment gains can overcome the losses almost everywhere else.
It's only when hundreds of thousands of new jobs are created each and every month that consumer spending will be able to pick up and be reflected in the media's all-powerful (yet very misleading) GDP.
Let’s see what the other 29 days of Sept. brings.
I bet we see the market below 10,000.
Market has to go up 37% from here just to reach its Oct/2007 high.
Dow Jone average has declined 969 points since Sept. of 2000.
Ten-year Return of minus 8.6%.
Suckers.
http://www.google.com/finance?q=INDEXDJX:.DJI
Touche’. Seems like everyone who blue skies the economic/market situation has a dog in the race.
Seems to bounce between 10,500 and 10,000.
RE: watch the Dow spike on November 3
The Dow actually DROPPED in November 2008 after Obama was known to have won the elections.
You must be a public pension funds manager.....
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