subject: Stock Trading Room Pt1 [print this page] Daily Stock Report for Friday Morning, March 5, 2010 pt1
Trading volume was low today as traders and investors were probably reluctant to take on big positions ahead of the Unemployment Rate announcement scheduled for tomorrow (Friday).
Stocks were mildly positive today even after an initial negative reaction to the pending mortgage applications lower than expected which somehow surprised the market. Our Gomer Pile Index says it shouldnt have been any surprise. The 30 year fixed rate is 4.97% now.
The jobless claims applications dipped from previous weeks but the weather probably had an effect of causing lower applications. So that could be expected to rise the next two weeks. So todays little pop from the reaction to lower claims may be
Productivity was up substantially with a 6.9% rate of increase. It is conceivable that the productivity is up with workers putting in more hours to keep their jobs secure. Also the increasing trend in productivity has been established for over 8 years now with of how we work using the internet, email, text, smart phones, etc. Greenspan made that hypothesis 10 years ago.
The market is likely going to react to tomorrows unemployment rate one way or another. It seems more likely that the rate goes down but it hasnt factored in the lack of claims from the last two weeks of severe winter weather.
REPEAT from last report: Fridays Unemployment Rate, is likely going to be skewed by the severe winter weather in the last couple of weeks. It may hide the fact that people were not able to get out and file claims so the number coming out on Friday could be underestimating what the true unemployment rate is.
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