Friday, September 09, 2011

Market comments for Sept. 9th, 2011

Many aren't sure about whether the market will close down or rally later today. You can bet that because of what's happening in Europe on the debt crisis and because it it the 9/11 10th anniversary, it will close down. Add the fact that there is a terrorist warning and you have a recipe for many to dump stocks today. The ECB has confirmed the resignation of its Chief Economist J. Stark over issues on Eurobonds. This caused markets in Europe to drop sharply. Mr. Stark, one of the ECB's most outspoken anti-inflation "hawks" had opposed the ECB's decision last month to reactivate its government bond purchase program, as did the head of Germany's central bank, Jens Weidmann. To read more on this from the Wall St. Journal Europe, click here.

In Financial news, Consumer credit increased in July according to data released yesterday. For a context, June's data showed Consumer Credit at $11.3 Billion. Expectations were for this to be down to $5.0 Billion for July. Instead July's number came in at $12.0 Billion.

Today's release of Wholesale Inventories showed an increase of 0.8%, Expectations were for a 0.7% number for July. June's data came in at 0.6%.

Fed Chairman Bernanke did not reassure markets yesterday. Many are looking for the Fed to announce a QE3, but so far they haven't.

President Obama gave his fiery job's speech last night to Congress. It was one of his best speeches on this topic of his Presidency. The real question is whether any real action will come out of the speech and get approved by this Republican controlled Congress.

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