Wednesday, September 2, 2009

Unemployment rate worried traders

As per ADP National Employment report, employment fell by 298000 in August following a loss of 360000 in July. It is much less than the number of losses in since last September 2008, but more than expected by the analysts.

This report on unemployment gave investors another reason to worry about what is widely seen as the biggest problem facing the current economy. Unemployment mostly hit consumer market. People are restricted themselves for consumer spending, which accounts for about 70% of U.S economic activity. It will be a real trouble in pulling the economy out of the longest recession after World War II, without getting much help from consumers.

"Until Friday's data comes, no one is really making any big bets," said Neil Massa, senior trader at MFC Global Investment Management. "A little profit-taking looks healthy at this point."getting much help from consumers.

Investors fear to take risk for the reason that a weak job market can effect in pulling up the economy and hit the stock market. For every two stocks, three fell.

The Dow fell 29.93, S&P index fell 3.29, while the Nasdaq fell 1.82. Bond price get a rise. Other smaller companies fell 2.23.


The Knowledge Lady said...

I don't think that the data takes into consideration the fact of many people on unemployment are now off the unemployment rolls. Not because they found a job but because their benefits ran out. Who counts those people? The welfare rolls perhaps? It might be worth it to take a look at the amount of people now trying to sign up for other government assistance like state funded medical coverage, food stamps and help with utility bills. That would give a better indication of where our economy stands right now.

kathy said...

We are moving out of recession and No matter what the past looked like we can always rectify our mistakes. Managing your money is not a difficult task if done in a careful, thoughtful, balanced way using legitimate means. The key is to be faithful in making wise financial investment