Senin, 09 November 2009

Investors Expect Less New FLE

This week investors on Wall Street, New York, again waiting for signs that could reinforce the belief that the United States economy began to come out of recession. They also need strong evidence to continue the rally.

A number of foundations for economic recovery in recent weeks began to appear. The level of consumer confidence rose, so did the housing market, which showed signs of improvement.

Last week, the data appeared that level of gross domestic product (GDP) America in the second quarter was still down. However, the decline was not as big as expected.

In addition, investors also enthusiastically welcomed the statement from the Governor Central Bank (the Fed), Ben Bernanke, August 21 and that the U.S. economy began to be on the verge of recovery.

In the last six months, the stock price index Dow Jones industrial achieve significant progress. Group of blue chip stocks are now living longer need 500 points to reach the level of 10,000.

According to analysts, the increase could continue to occur if the number of new reports that will be announced this week could lead to positive sentiment for investors. This week they will receive unemployment report and the performance of the manufacturing sector during August.

"The market is now in the atmosphere when the investors only got the news that is not so bad, but only slightly positive, then they will start selling off," said Ben Halliburton, an observer of Tradition Capital Management in Summit, New Jersey.

A story that seems most investors awaited this weekend is to report the unemployment rate. They already know that currently would not a positive sign considering the ongoing case of termination of employment (FLE) mass of recovery despite a number of companies started to happen.

However, investors hope that many companies began to reduce layoffs. According to the economists surveyed by Thomson Reuters, the number of layoffs in August of this case will come down, from 247,000 cases in July to 220,000 cases.

The investors hope that the projections will not miss from government data, which will be announced next Friday. If the number of new layoffs cases actually reduced, then the investor would dare to take action borong shares. "That would be big news and could be a turning point," said Maury Fertig, investment officer of Relative Value Partners

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