What Did We Learn About the Labor Market Last Week?

Promptly at 8:30 a.m. on Friday morning, the Labor Department released their initial guess of payroll employment growth for the month of July. The employer survey numbers generally beat market expectations, coming in at a seasonally adjusted increase of about 163,000. The previous month’s gain was revised downward to 64,000. The Bureau of Labor Statistics […]

Does Draghi Know What He is Doing

A number of news reports are stating that the actions of both the Federal Reserve and the European Central Bank (ECB) disappointed markets this week and are the reason behind Thursday’s market decline. This article evaluates whether the reports on the actions of just the ECB are likely or unlikely to be accurate. As a […]

The Federal Reserve is Not Responsible for the Stock Market Decline

A number of news reports are stating that the actions of both the Federal Reserve and the European Central Bank (ECB) disappointed markets this week and are the reason behind Thursday’s market decline. This article evaluates whether the reports on just the Federal Reserve are likely or unlikely to be accurate. As a review, this […]

Home Prices Indicate a Housing Market Recovery

The S&P/Case Shiller home price index was released today for the month of May, with the results indicating that home prices climbed in all 20 metropolitan areas covered by the index, with the nationwide home price rising 2.2 percent on a month over month seasonally adjusted basis and a 0.7 percent year over year gain. […]

Collusion, Government Style Geithner, Draghi, and Schaeuble

German Finance Minister Wolfgang Schaeuble and U.S. Treasury Secretary Timothy Geithner met today on the German Island of Sylt to address, depending upon your perspective, coordination or collusion of their respective governments’ responses to the current European debt issues. Geithner is also scheduled to meet later in the day with European Central Bank President Mario […]

Central Bankers Take on the Future of the Economy

In the coming week the Federal Reserve’s Open Market Committee will meet to discuss monetary policy options available that may end up helping or hurting future economic growth. Additionally, the European Central Bank (ECB) head Mario Draghi is set to meet with Germany’s Bundesbank president Jens Weidmann. The upcoming meetings are important because they will […]

Why are Equities not Declining with the Recent Poor Economic News?

The S&P 500 hit a three month high yesterday, climbing 3.6 percent over last two trading days. The Dow Jones closed above 13,000 for the first time since May 7th. With the recent news on consumer spending, business investment, housing, production, and GDP indicating continued slowdown, why are stocks going the other direction? There are […]

Friday’s GDP Numbers What are the Government Figures Telling Us About the Economy?

On Friday the Bureau of Economic Analysis released its advanced Gross Domestic Product figures (GDP). As suspected, the growth figures showed a slowing economy, with the seasonally adjusted annual growth rate coming in at 1.5 percent, a decrease of 0.5 percent from the previous quarter. Although the second quarter advanced GDP release came in generally […]

Facebook Was the Market’s 10 Percent Reaction Justified?

Facebook held its first investor conference call on Thursday. Hosted by Chief Executive Mark Zuckerberg, Chief Operating Officer Sheryl Sandberg, and Chief Financial Officer David Ebersman, the social media company executives from Facebook discussed their overall outlook and vision for continued growth in the traditional and mobile space. The market took the announced financial results […]

Can the EBC Really Save the Euro?

Speaking in London on Thursday, European Central Bank (ECB) President Mario Draghi said that “the bank would do whatever it takes to preserve the Euro.” Draghi’s comments were enough to push European stocks up around 3 to 4 percent.