Update 2: DOW off a cliff: down 230…El-Erian on economic outlook & Santelli & Liesman on the data; Market Mover Friday: Consumer Spending plunges – down 0.5%

Update 3: Closing Bell DOW down 251 to 9710, S&P closed under that 1040 level, losing 30 to close at 1036, NAS down 52 to 2045.

Update 3: 309pm EST: we just broke under 3.40 on the 10, 3.39 and the traders have an eye on the S&P at 1040 1042 is the closing level to watch (1035 now) DOW near the lows off 263. as of 200pm 456 of 500 S&P 500 stocks are lower..

Update 2: Dollar up, and in tandem as has been its habit DOW falling. Methinks peeps saw the consumer spending and got with MiM’s analysis of the GDP for themselves. WHAT IS THE DRIVER OF GROWTH GOING FORWARD?

None , zip, zilch, the big goose-egg. What sane capital would take a risk in this political environment? Not I. I would keep my head down I wouldn’t even want to make ‘too much profit’. Pfft. Nowhere to go but down after a 3.5% GDP yesterday, the govt cant print fast enough to maintain the velocity of money to hit that number in 4Q, and 1Q 10? Housing should be collapsing again under unemployment.

DOW was down 270 now down 228 to 9735, S&P down 26 to 1039 NAS down 47 to 2050. Peeps watching 10 yr yield at 3.40, if we break that, they say hold on…

Update: PIMCO’s El-Erian on economic outlook & Rick Santelli and Steve Liesman debate the spending and income data:

Vodpod videos no longer available.

Vodpod videos no longer available.

..and they are SHOCKED! SHOCKED! shaka zulu? nah chaka chaka khan (it is Friday!)

chaka let me rock ya! let me rock ya chaka khan!

DOW off 70 now…


U.S. consumer spending fell in September after four months of gains as a government program to boost auto purchases ended, adding to fears that economic growth could stumble without government support.

The Commerce Department said Friday consumer spending fell 0.5 percent, the largest decline since December, after a 1.4 percent increase in August….

…”It sets up a very weak fourth quarter for consumption. It might be around flat to up 1 percent annualized in the fourth quarter,” said Ian Morris, chief economist at HSBC Securities in New York.

“But if inventories add and you get some rise in business investment, you could get a much more decent fourth-quarter (GDP gain) of around 3 percent,” he said….

Yeah if they extend the homebuyer tax credit and keep throwing money at the wall to see if it sticks we could get another faux GDP number in 4Q 1Q 10, but it isnt real, there are no jobs and therefore consumers are not spending and there is no recovery.

October 30, 2009. Tags: , , , , , , , . Economy, Music, Obama Administration, Politics, Unemployment Statistics, Wall St.

One Comment

  1. tommoriarty replied:

    George Orwell would be impressed by the administration’s performance.

    Best Regards,


%d bloggers like this: