CEO confidence decreased slightly in the first quarter of 2010. The measure declined to 62, down from 64 last quarter (a reading of more than 50 points reflects more positive than negative responses).
Consumer confidence index arrived at 57.9 (1985=100), up from 52.3 in March and 46.4 in February. Economists watch the number closely because consumer spending accounts for about 70 percent of U.S. economic activity. However, April's reading is still far from what's considered healthy. A reading above 90 indicates the economy is on solid footing; above 100 signals strong growth.
If consumer spending continues its uptrend, business executives will likely to have greater confidence in economic growth and increase capital spending and hiring more employees, which will in turn boost consumer confidence.
The recovery of the Dow Jones Industry Average seems to lose its steam and the price target is now adjusted to 11,286.
Thursday, April 29, 2010
Market Overview April 14, 2010
Consumer Confidence Index stands at 52.5 (1985=100), up from 46.4 in February. The Present Situation Index increased to 26.0 from 21.7. The Expectations Index improved to 70.2 from 62.9 last month. The rise of confidence index might be supported by improving job market. The Conference Board Employment Trends Index™ (ETI) rose in March for the seventh consecutive month. The index now stands at 94.4, up from February's revised figure of 93.7. The index is up 5.5 percent from a year ago. Over the past three months, all of the index's eight components have been improving.
On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% in March. The U.S. Import Price Index rose 0.7 percent in March. The increase was attributable to higher prices for both fuel and nonfuel imports and followed a 0.2 percent decline in February. Export prices also rose 0.7 percent in March after declining 0.4 percent the previous month.
Dow Jones Industry Average has been climbing since we forecasted its continued rise when it was at 10,566.02 on March 9, 2010. While economic situation is improving, the market is yet to see signs of sustainable growth, leading to a volatile path in the foreseeable future.
On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% in March. The U.S. Import Price Index rose 0.7 percent in March. The increase was attributable to higher prices for both fuel and nonfuel imports and followed a 0.2 percent decline in February. Export prices also rose 0.7 percent in March after declining 0.4 percent the previous month.
Dow Jones Industry Average has been climbing since we forecasted its continued rise when it was at 10,566.02 on March 9, 2010. While economic situation is improving, the market is yet to see signs of sustainable growth, leading to a volatile path in the foreseeable future.
Market Overview March 31, 2010
According to the Conference Board, economic indicators have improved in February with both leading and coincident indices increased 0.1% and lagging index increased 0.3%. Although the Consumer Price Index published by the U.S. Bureau of Labor Statistics stays unchanged for All Urban Consumers in February, the prices of goods and services consumed showed some increase given the fact that the prices of foods and energy dropped in February. The data indicate that the economic recovery is pretty bumpy and fragile at best.
The recovery of the Dow Jones Industrial Average has come close to the 11,000 mark and its short-term advance seems to be unsustainable. From long-term point of view, the stock market is expected to be volatile in 2010.
The recovery of the Dow Jones Industrial Average has come close to the 11,000 mark and its short-term advance seems to be unsustainable. From long-term point of view, the stock market is expected to be volatile in 2010.
Market Overview March 9, 2010
According to the Conference Board, its Employment Trends Index rose in February for the sixth consecutive month and now stands at 93.5. Furthermore, US Net Employment Outlook has turned to positive (8%) for Q2 2010. The rising indicators show that job growth is about to begin.
Dow Jones Industry Average closed at 10,566.02 today. It has gained 4,009 points since its 7,600+ point fall to 6547.06 on March 9, 2009. This recovery is not yet finished; it is likely to approach 12,500 before another major correction.
Dow Jones Industry Average closed at 10,566.02 today. It has gained 4,009 points since its 7,600+ point fall to 6547.06 on March 9, 2009. This recovery is not yet finished; it is likely to approach 12,500 before another major correction.
Market Overview February 26, 2010
While Consumer Price Index increased 0.2% in January, the index for all items less food and energy fell 0.1%, indicating that consumers are not willing to spend more money except paying for the necessary living costs amidst high unemployment rates, declining personal wealth due to the drop of home prices, and bearish news ranging from clogged foreclosure homes in supply and upcoming waves of the reset of the rates of accumulated adjustable rate mortgage to sovereign debt compound spirals in countries such as Greece. The anxiety fuel by the negative news sent Consumer Confidence Index from 56.5 in January to 46.0 in February (1985=100). Although signs of economic recovery have been detected here and there, the recovery is vulnerable as long as individuals’ consumption is not on a steady rise. Dow Jones Industry Average closed at 10,325 today. Given the great deal of uncertainty in economic growth, the stock market is likely to be volatile in 2010.
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