Stocks Hit By Dollar, Jobless Claims

The Street ^ | Melinda Peer

[blam]

Stocks Hit By Dollar, Jobless Claims

By Melinda Peer
12/17/09 - 09:44 AM EST

NEW YORK (TheStreet) -- Stocks opened lower Thursday as weekly jobless claims rose more than Wall Street expected and the dollar strengthened.

More on C Amazon.com: Analysts' Upgrades, DowgradesBank of America, New CEO Face ChallengesFedEx Earnings Down, but Beat Estimates Market Activity FedEx Corporation| FDX DOWNDiscover Financial Services| DFS DOWNDow Jones Industrial Average| ^DJI DOWNThe Dow Jones Industrial Average was down by 62.7 points, or 0.6%, at 10,378.5 shortly after Thursday's opening bell. The S&P 500 was lower by 7.1 points, or 0.6%, at 1102.1 and the Nasdaq was off by 14.5 points, or 0.7%, at 2192.4.

Weekly jobless claims came in at 480,000 for the week ended Dec. 12, compared with 473,000 the previous week, which was downwardly revised from 474,000. The figure was higher than the 465,000 new claims that economists had been expecting. Continuing claims rose 5,000 to 5.19 million in the week ended Dec. 5, exceeding forecasts for 5.17 million.

[snip]

The DJIA is down 85 as I post. See here.

[blam]

European Shares Extend Losses, Banks Weigh

"LONDON, Dec 17 (Reuters) - European shares extended losses on Thursday as Wall Street fell in early trade, with banks in Europe the major fallers."

[snip]

[KeyLargo]

U.S. Jobless Claims Rise In Latest Week

By Greg Robb
MarketWatch Pulse

WASHINGTON - First-time claims for state unemployment benefits rose unexpectedly in the latest week, the Labor Department reported Thursday. The number of initial claims in the week ending Dec. 12 rose 7,000 to 480,000. The consensus forecast of Wall Street economists was for claims to fall to 465,000. Claims in the prior week were revised to 473,000 from the intial estimate of 474,000.

[FastCoyote]

[weekly jobless claims rose more than Wall Street expected]

Damn, more UNEXPECTED news that everyone here at Free Republicans could have guessed in a heartbeat.

[scooby321]

damn that was a short recovery.

[jpsb]

Wonder how retail is doing this Christmas shopping season?

[Thermalseeker]

Damn, more UNEXPECTED news that everyone here at Free Republicans could have guessed in a heartbeat.

The real party hasn't even begun yet....

[AceMineral]

There certainly haven’t been any stories about hordes of shoppers spending money by the bushel to “save” Christmas. In fact, after Thanksgiving there really hasn’t been any news.

[TUX]

Politicians understand only POWER and MONEY. We cant seen to vote the power mad socialist out, but we can sit on our collective wallet. Cut off the money head and the socialist snake will die.

The empty suits, and the chattering elite, are thrashing about with their socialist schemes seeking someone to blame but “Brier Fox he lay low” with his money under his mattress.

[blam]

"... “Brier Fox he lay low” with his money under his mattress."

Yup. There's more than one way to 'skin a cat.'

[FromLori]

snip

The dollar rose to the highest level in three months against the euro while stocks and commodities slid as investors shunned risky assets on concern the global economic rebound will stall. Treasuries rallied.

The U.S. currency advanced against the 16 most-traded peers at 10:34 a.m. in New York after the Federal Reserve indicated yesterday it may begin to scale back emergency-lending programs. The Standard & Poor’s 500 Index lost 0.8 percent as Citigroup Inc. sold stock at a discount, FedEx Corp.’s profit forecast trailed estimates and initial jobless claims unexpectedly increased. The S&P GSCI Index of 24 commodities fell for the first time in six sessions, losing as much as 1.1 percent.

S&P’s decision yesterday to reduce Greece’s credit rating for the second time this year raised concern among investors that the worst global recession since World War II is still weighing on some economies. At the same time, the Fed said after a two-day meeting that most of its lending programs will expire as scheduled Feb. 1.

“It’s just a bad day of news,” said Kevin Rendino,

http://www.bloomberg.com/apps/news?pid=20601087&sid=aYkFDaywNN.o&pos=1

Meet The Doomsayers Who Just Won’t Give Up

http://www.businessinsider.com/doomsayers-2010-2009-12#top

[Thermalseeker]

Yup. There's more than one way to 'skin a cat.'

My little home town bank is becoming more and more cautious. We did a warranty job for one of the German glider manufacturers a couple of months ago. This is a well established, profitable, 75 year old company. They paid us with an international money order. It was only $1500 and we have strong cash flow now and plenty in the account to cover it if it bounced. The bank is holding the money order for six weeks! They know the minute they process it whether or not it's good. That one really got my attention. 'Ol Brier Fox might just have a point.....

[jpsb]

Have not been to the stores much this season, but when I do shop I have not seen chowds of shoppers. I got out of the market right before Thanks Giving. Will not get back in untill well after Christmas, if I get back in. Might just go the gold/silver route.

[PeterPrinciple]

Some one on FR once posted the recession was not the problem, it was the cure.

All we are doing is prolonging our problems..........

[PeterPrinciple]

The bank is holding the money order for six weeks!

---

It might be because fraud is rampant as well as an indicator of the economy.

[blam]

My small local bank (Bay Bank) has a ‘poor’ rating and 72% of their assets are at risk...according to a newspaper article two days ago.

[Oatka]

The folks at the Department of Employment in Clark County, NV seem to be pretty level-headed, correctly interpreting the heading (3rd paragraph). Las Vegas jobless rate falls as labor force shrinks

[blam]

GLOBAL MARKETS-Year End, Dollar Surge Dents World Stocks

Thu Dec 17, 2009 12:58pm EST
By Jeremy Gaunt and Al Yoon

* Global stocks damped as dollar rallies strongly

* Year end trading reduces risk taking

* Greece concern drags euro lower

LONDON/NEW YORK, Dec 17 (Reuters) - The dollar jumped to its highest in more than three months against major currencies on Thursday as a U.S. economic report supported a slightly more optimistic outlook delivered by the Federal Reserve.

World stocks fell nearly 2 percent, with bank shares hurt as the Fed on Wednesday said some special programs to support the financial system were no longer needed and would expire by early next year.

The euro fell to over a 3-month low, also hurt by Standard & Poor's downgrade of Greece's rating by one notch, to BBB-plus from A-minus, late on Wednesday.

While the U.S. central bank left rates unchanged, prospects the Fed outlook will spark tighter U.S. monetary policy earlier than expected triggered an unwinding of short dollar positions ahead of the new year. Investors also pared riskier equity positions to protect profits at year end after a more than 70 percent rally for global equities since March.

The Fed gave no indication it would soon raise it target rate from near zero. But debate is intensifying for a move to curb the inflationary pressure of easy U.S. monetary policy, and close the gap with European rates -- a move that would boost the value of dollar-based assets.

"The markets have had a big recovery from their lows, and right now traders are looking to more or less nail down some profits," said Steve Goldman, market strategist at Weeden & Co in Greenwich, Connecticut, who added that the stronger dollar is removing what had been a key driver of U.S. equity gains.

[snip]

(My guess is that people are parking their money in US dollars as they head out for the Christmas holidays...less worry that way. We're still the world's largest economy by 5X...so.)

BTW, the DJIA is down 99 as I post.

[Thermalseeker]

It might be because fraud is rampant as well as an indicator of the economy.

Fraud is one possibility, but more likely they are just playing the float for all it's worth. This was an international money order. They are supposed to be better than a cashiers check. Initially, we tried to transfer the funds electronically. I've done E-transfers with this bank for almost 20 years, domestic and international, but this time they just couldn't seem to get it right. After four tries they refused to try again. The entire episode is making the "Bank of Mason" look a lot more appealing.....

[PeterPrinciple]

but more likely they are just playing the float for all it's worth.

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That's is a possibility but float isn't worth what it used to be at today's interest rates. I think we are looking a loss of trust. I know I don't trust anyone like I used to.