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Last week, stocks market action and index line trends ended on an upswing. More specifically, the Dow and S&P 500 saw their biggest weekly advances in over two months. Trading optimism took hold Friday after the Bureau of Labor reported that the number of non-farm jobs rose by 151,000, but the number of people filing for unemployment remained unchanged at 14.8 million. The positive news here is that the economy did generate a net gain in jobs for the first time since May of 2010. Positive momentum and trending is expected to carry over into today’s trading session and for this trading week overall. The Mid-term election results put a Republican contingent in power. The Fed’s are pumping greenbacks into the economy and the job market looks to improve during the holiday season. There should not be any significant news this week to sink the boat of optimism. Later this week on Tuesday, the Commerce Department releases the wholesales inventory report and this is expected to be positive. The Department of Labor will release the weekly jobless claims report on Wednesday of this week. The number of Americans filing for new claims is expected to fall and thus this report should be a continuation of the positive postings. Several earning reports of significance post on Wednesday and reports on imports and export prices will post this day. Thursday will bring discussion relevant to the two-day summit in Seoul where world leaders, including President Obama, will gather to discuss currency rates and relevant economic data. Thursday is also Veteran’s Day and although the markets remain open, some American banks and all government offices will be closed. Ending the week will be the University of Michigan’s consumer sentiment report. This report is expected to have risen compared to the previous months data. News relevant to the stock market appears to be good. However, stock futures for today before opening bell for November 8th, 2010 are in the red. World markets are currently mixed with Asian green and European red. The Federal Reserve released a statement saying that “the pace of recovery in output and employment continues to be slow.” The Feds made the move to buy up bonds to lower interest rates and thus entice the public to spend, borrow and pay on mortgages and other loans. We’ll see if the the Fed’s “Premack Principle” strategy works the way it is expected. If it does, the economy should be on its way forward. Author: Frank Matto
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