FN: Equities are feeling a little frisky from the Intel (INTC) earnings beat last night. A couple of other names beat yesterday as well. The whole thing is a giant gong show really. When the world unraveled these companies stopped giving guidance and analysts guessed really really low. This was done precisely to guarantee a beat or make an official miss impossible.
As one of the traders I talk to put it, "Unless Intel is going to hire 6 million Americans, it doesn't do shit."
Its all about the jobs. No jobs means no purchasing power. In the meantime, it appears to be "bounce time". The 912 area is the first area of resistance. The next big area is 930, the previous swing high. The ultimate line in the sand for the Bears is 950.
Global Confidence Drops as Unemployment Surge Counters Stimulus: "Confidence in the world economy dropped for the first time in four months in July as government stimulus efforts showed little sign of reducing unemployment, a Bloomberg survey of users on six continents showed.
The Bloomberg Professional Global Confidence Index declined to 39.13 in July from 43.57 in June. A reading below 50 means pessimists outnumber optimists. A measure of U.S. participants’ confidence in the world’s largest economy fell to 29.5 from 36.7, the survey showed.
The MSCI World Index is down close to 2 percent since the U.S. Labor Department on July 2 reported higher-than-expected job losses and an unemployment rate approaching 10 percent. Treasury Secretary Timothy Geithner said yesterday the world will probably suffer “more than the usual” setbacks in exiting the worst slowdown since the Great Depression.
“No one can wave a magic wand,” said David Semmens, an economist at Standard Chartered Bank in New York and a regular survey participant. “We aren’t pulling out of the recession in the same way as in past recessions. The economic outlook isn’t improving as strongly as people would have hoped.”"
As one of the traders I talk to put it, "Unless Intel is going to hire 6 million Americans, it doesn't do shit."
Its all about the jobs. No jobs means no purchasing power. In the meantime, it appears to be "bounce time". The 912 area is the first area of resistance. The next big area is 930, the previous swing high. The ultimate line in the sand for the Bears is 950.
Global Confidence Drops as Unemployment Surge Counters Stimulus: "Confidence in the world economy dropped for the first time in four months in July as government stimulus efforts showed little sign of reducing unemployment, a Bloomberg survey of users on six continents showed.
The Bloomberg Professional Global Confidence Index declined to 39.13 in July from 43.57 in June. A reading below 50 means pessimists outnumber optimists. A measure of U.S. participants’ confidence in the world’s largest economy fell to 29.5 from 36.7, the survey showed.
The MSCI World Index is down close to 2 percent since the U.S. Labor Department on July 2 reported higher-than-expected job losses and an unemployment rate approaching 10 percent. Treasury Secretary Timothy Geithner said yesterday the world will probably suffer “more than the usual” setbacks in exiting the worst slowdown since the Great Depression.
“No one can wave a magic wand,” said David Semmens, an economist at Standard Chartered Bank in New York and a regular survey participant. “We aren’t pulling out of the recession in the same way as in past recessions. The economic outlook isn’t improving as strongly as people would have hoped.”"
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