“Stocks opened higher Friday, the final trading day of January, after the GDP report showed the economy grew more than expected in the fourth quarter,” CNBC reports.
“Gross domestic product growth rose 5.7 percent in the final three months of 2009, topping estimates of 4.6-percent growth. While much of the growth was attributed it to inventory rebuilds, there were also some other pockets of strength, which gave a boost to stocks,” CNBC reports.
“But traders were slightly worried about a couple of points in the report: The sharp revision to the prior quarter’s growth and consumer spending,” CNBC reports. “‘Traders are viewing this number with tepid enthusiasm,’ said Todd M. Schoenberger, managing director of LandColt Trading in San Antonio, Texas. ‘The biggest disappointment was the print on consumer spending, which only contributed 1.44% to GDP,’ he said. ‘Considering 70% of GDP comes from the American consumer, the outlook for future quarters still looks bleak considering the labor situation in the country.'”
CNBC reports, “As of Thursday’s close, major indexes are on track to end lower for January. The Dow is down 3 percent so far for January. If it holds through today’s session, that would be the biggest monthly loss since last February.”
Full article here.
The Associated Press reports, “Concerns have been mounting that potential new regulations coming out of Washington could upend a fragile economic recovery. President Barack Obama’s calls last week to restrict trading by big financial institutions helped spark the sell-off. He has provided scant details about the bank overhaul plan to help alleviate any concerns.”
“High unemployment — it remains at 10 percent — is one of the biggest obstacles the country faces… some say the economy will slow from the torrid pace seen during the fourth quarter because much of the growth was tied to companies replenishing low inventories,” AP reports. “Restocking of inventories usually only provides a temporary bump in economic growth.”
AP reports, “In early morning trading, the Dow Jones industrial average rose 30.15, or 0.3 percent, to 10,150.61. The Standard & Poor’s 500 index rose 3.66, or 0.3 percent, to 1,088.19, while the Nasdaq composite index rose 16.73, or 0.8 percent, to 2,195.73.”
Full article here.
MacDailyNews Note: At 9:55am ET, shares of Apple Inc. (AAPL) are trading up $1.89, or 0.95%, at $201.18, down $14.41 from their $215.59 all-time high set earlier this month.
I hate to say it but Cramer was right!
I guess I should have been an economist. That way, every dam time any stats come out I could say they were “surprisingly high/low” or “better/worse than expected” and then go back to my cacoon…
President Barack Obama’s calls last week to restrict trading by big financial institutions helped spark the sell-off.
Does anyone remember that the crmininal in house trading is part of the reason the whole world’s economy collapsed? Then after getting propped up by taxpayers, these miserable fucks patted themselves on the back and handed out billions of bonuses? Fuck the banks and fuck Wall Street. These bastards congratulate themselves while Americans starve.
We are where he wants us to be. Welcome to America’s lost decade, preditcated upon punitive responses toward success, rewards to failure and mediocrity, and kowtowing to arrogance, bullying, and global duplicity.
Will probably close red.
Who wants a stock with a forward P/E of 15, 40 billion in cash, overall growth rate of 25% annually, profitability growth even higher, no products that are losing money, higher margins than anyone else in the industry is getting bar none, head room for growth in key industries such as mobile phones and computers, and with leading edge products like the iPad that will disrupt dinosaurs across the spectrum in the coming years.
No, this is a loser.
Investors add value by providing capital for companies to grow on.
Short term traders add no value at all to any product or company. Anyone who holds a stock less than 30 days shouldn’t be allowed to write off losses, and should be taxed 50% on gains. That would solve about 90% of the problems on Wall Street IMNSHO.
Regarding those bankers and starving Americans, we Brits discovered recently exactly how much your average banker is worth to society: less than your average cleaning lady.
I suspect it’s much the same in the States. Take a look at the report at:
http://www.guardian.co.uk/business/2009/dec/14/new-economics-foundation-social-value
@ET
Spot on.
Run for Prezzie. I’ll vote for you.
@theloniusMac – What I’d like to see is a punitive response to failure, i.e., when reckless financiers tank the national and global economy because of utterly insane and incomprehensible financial products leveraged to amounts more than the national GDP, they should be arrested, and preferably publicly executed.
Count me as a vote for ET’s proposal as well. Heck, maybe I’ll incorporate so I can cast a bunch of votes for it!!
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I agree with everyone’s sentiments here. The average Joe has his life turned around because traders are playing games in the market to make a fast buck.
The credit crunch still hasn’t been solve. Individual credit levels are at the highest level ever which will add more volatility to a shaky economy.
I’m for more control of the banking and credit system because they are failing to regulate themselves in an appropriate manner.
Better be wise and unpopular, than congratulated by the stupid.
To x,we are trading at less then a forward 15.They have over $40 a share in the bank.ie, their price is approx. trading at $155.00 with earning about $12, they are trading close to 13 forward pe.
I wouldn’t worry about Obama, folks. The Supreme Corp. made sure that the next election will go to the highest bidder.
C1
1) How did they do that?
B) I thought the last election did….
@ TowerTone
Project much? ;P
Well, most of the informed analysis I have read went along with this
http://opinionator.blogs.nytimes.com/2010/01/27/justice-alitos-reaction/?scp=5&sq=supreme court&st=cse
So I guess the ‘populist’ take just doesn’t seem too convincing.
I’m not hung up on Obama’s foreign nationals remark, I’m more worried about US companies newfound power to bankroll attack ads.
It’s not newfound, C1. That is what’s misunderstood. It is basically a repeal of McCain-Feinfold, a fairly new law that was shoddily enacted.
Well you know I’m all for repealing McCain.
I can’t wait to see how this one plays out – http://www.murrayhillweb.com/pr-012510.html
Hah! Yeah, obviously not too many Conservative were that thrilled with him either.
I just finished watching our President spend the last hour and a half speaking to Republican Congressman. Very good. I wish they spoke with that much candor always!!!!
Maybe if they would pass something more like “My Cane Thine Gold” whereby constituents could beat their representatives when they act completely stupid…..
@ TowerTone
I’d be totally behind that. In fact, I’d wanna hold the cane.
I know the feeling (just no turning it into a date….)
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You’re right about Conservatives not being thrilled with ol’ tiger cage. Even on Fox News, the comments aren’t going his way:
http://congress.blogs.foxnews.com/2010/01/27/mccain-says-mistake-to-repeal-dont-ask-dont-tell/
That’s a tough one, designed to make it easier for homosexuals to be kept in the military (as they should) while trying to shift the spotlight away from their sexual preferences that could cause problems in situations where men are confined and don’t want to be confronted with those complexities.
I also supported Pres. Clinton with that one.
Also, the military should have more of a say in how it is handled.