Thursday, September 25, 2008

Jobless Claims, Durable Goods, and GE

Filings for first time benefits increased by 32,000 to 493,000.  Last weeks numbers were revised to 461,000.  This is the highest since September 2001.  Some of the increase probably had to do with the hurricanes.

But we have been saying look for the job markets to get weaker. And now with the bailout plan, the treasury yields should go higher.  This will mean a higher interest rate.

Durable Goods

Durable goods - goods meant to last several years - bookings dropped 4.5%.  Previously reported numbers were revised lower to .8%. 

GE Cuts Forecast, Suspends buyback

From Bloomberg:

General Electric Co. reduced its annual profit forecast for the second time this year and suspended its stock buyback because of ``unprecedented weakness and volatility'' in financial markets.

Full-year earnings will be $1.95 to $2.10 a share instead of the earlier projection of $2.20 to $2.30, Fairfield, Connecticut- based GE said today in a statement. The world's fourth-largest company by market value fell in early New York trading.

Considering all this news, the markets would have tanked had it not been for the optimism on the bailout package.  But considering the problems in the economy, I wonder if that optimism will last.

It's going to be interesting to see what happens to the price of gold with the bailout package.



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