Economics Call November 2, 2009
Case Shiller home price index was up for the 3 rd straight month New Home Sales were down in September –This industry has mixed data Orders for Core Capital Good were up 2% –Big number for the series –This figure excludes aircraft and defense Economic News
Real GDP was up 3.5% Economic News
Consumer Confidence fell in October to 70.6% (it was 73.5%) Labor Cost Index was up 4% for the quarter Consumer Spending in the fourth quarter might be offset by business spending ISM Manufacturing Index was sharply up on Monday –Rose to 55.7 from 52.6 in September –The highest level since April of 2006 Economic news
Tuesday –Auto and Truck sale Reports Wednesday –ISM Services –Press release from FOMC meeting Thursday –Productivity Output per hour, it has been very strong and almost double the figure in a normal economy It is likely that with high productivity numbers will come high profits and therefore an increase in Stock Prices Friday –Non Farm Payroll –Average work week (this has not turned up yet) Numbers to Look For
S&P dropped 4%, it is down 5.66% from its peak and 2% for the month of October –Financials were down 6.23% –Basic materials were down 7% –Telecommunications were down 1.5% This was the best performing sector of last week Many economists are worried about the strength of the recovery –However private demand is picking up along with the Global economy CIT group filed for Chapter 11 bankruptcy Last Week