| |
 |
|
|
Finance & Stock Groups Forum Index » Futures » Alterama Morning Call by Alterama research department
Page 1 of 1
|
| Author |
Message |
| Guest |
 Posted: Thu Aug 23, 2007 5:02 pm |
|
|
|
|
Alterama 08-23-07 8:55 AM
The number of U.S. workers filing new claims for
jobless benefits fell last week for the first time in five weeks,
though the
level of claims remains consistent with only modest growth in
employment.
Still, the figures suggest that despite turbulence in financial
markets,
consumers should remain supported by relatively healthy labor markets.
Wall Street forecasts had called for 2,000 decline last week to
320,000,
according to a Dow Jones Newswires survey.
The four-week average - which economists use to gauge underlying
labor market
trends - rose 4,750 last week to 317,750. That's the third-straight
rise.
Labor markets are being eyed amid worries about the availability of
credit in
financial markets. As long as labor markets hold up, economic
fundamentals
should support growth on Main Street even if Wall Street suffers. But
if
employment starts to falter, then consumers could curtail spending,
which makes
up the bulk of economic activity.
If labor markets and, in turn, consumption head lower it would
intensify
pressure on Federal Reserve officials to cut their main policy tool,
the
federal funds rate. Futures markets are pricing in multiple reductions
in the
fed funds rate starting next month to alleviate credit crunch worries
and their
potential economic effects. The Fed has already lowered the discount
rate is
charges banks that borrow directly from the Fed.
At Alterama we think that the market is wrong in pricing multiple cuts
and that there is no such a thing like a Berneke put.
Alterama's trade of the day: Short the Nasdaq 100 (or QQQ) at the
opneing and cover at close today. |
|
|
| Back to top |
|
| |
|
Page 1 of 1
All times are GMT
The time now is Fri Jan 09, 2009 2:52 am
|
|
|