Market Update: DOW pops 112 on ISM >50 & Goldman Sachs big bank upgrade, Gold hits $1017…

See the zombie bull market ride! but watch that GOLD it is back on a tear as the US Dollar sinks…Bassey time!

DOW closes up 112.08 to 9599.75; S&P up 15.25 to 1040.46 and NAS up 20.04 to 2068.15

ISM edged over 50 today.

CNBC:

Large U.S. banks’ normalized earnings have surged 39 percent this cycle mostly on long-term accretive deals, but banks’ share prices do not fully reflect their earnings power, Goldman Sachs said as it upgraded big banks to “attractive” from “neutral.”..

I am with Meredith Whitney on the big banks and the second housing drop about to happen…what else might have caught traders’ eye today…how about the TAX CUT talk from the WH?

John ‘Obama mouthpiece’ Harwood:

…Publicly, White House aides and Congressional leaders have responded with incessant attempts to highlight benefits from the $787 billion economic stimulus package they enacted earlier this year. Privately, Mr. Obama’s economic advisers are sifting options for a new package of tax cuts and other job creation measures to be unveiled in next year’s State of the Union address — or earlier if pressure for action becomes irresistible….

…even Mr. Obama’s economic team now concedes that unemployment, which they once hoped to keep from exceeding 8 percent, will get worse through the end of the year. One outside economist, Mark Zandi, predicts the economy will shed 750,000 more jobs over the next six months, with unemployment peaking at 10.5 percent in June….

Democrats are considering other steps in addition to the extension of unemployment benefits now moving through Congress.Mr. Zandi recommends that the administration extend existing measures, like a tax credit for homebuyers and accelerated depreciation for businesses. Yet even if those steps succeed economically, the political question is how quickly they could help Democratic candidates….

And lookee at GOLD, up 13.5 to $1017.80 today as the US Dollar fell! BofA/Merrill calling for 1500:

Gold prices will hit $1,500 an ounce in 2011 when oil prices move back above $100 a barrel as emerging market growth creates shortages, Bank of America Merrill Lynch said on Monday. “For the world economy to resume growth of 5 percent, commodity supplies must expand by a similar rate, ” said Francisco Blanch, head of global commodity research at the U.S. bank. “With emerging markets likely to lead the global recovery, too much money chasing too few barrels could bring another spike in oil prices.”…

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October 5, 2009. Tags: , , , , , , , , , . Economy, Finance, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. Comments off.

Stiglitz sees risks of ‘big bumps ahead for US economy’ & sustained UE in double digits, suggests a need for stimulus round deux

Our previous posts on Stiglitz here his answer is to spend more, OF COURSE IT IS! But Team TOTUS will hang on every word he says so it is good to know what he is saying.

Joe is talking about the UE rate again today see here.. The headline from that link is he sees ‘big bumps ahead for US economy..embed is disabled 😦

Here he is last week:

Bloomberg:

Exclusive Interview with Columbia University Professor Joseph Stiglitz (Bloomberg News)

October 5, 2009. Tags: , , , , , , , . Economy, Finance, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 1 comment.

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