The stock market defys the bad news

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The unemployment situation

Today news aboute the unemployment rates hit the streets. The situation is whorse than expected by experts as 250.000 people are now out of jobs instead of the 205.000 that were expected. These people are in a terrible situation loosing their jobs this close to christmas.

The Beige Book

Around noon american time the yearly Beige Book came on the street. This book contains an analycsis of the nations financial situation in general. The bank managers of the twelve Central Banks contribute to the analysis by sharing their views. This year the evaluation of the financial situation was whorse than last year.

Was all this bad news expected?

Alle this bad news taken in to consideration it seems strange that the stock market did not react by negative numbers. The three leading stock index all agreed  as the Dow Jones went up by 2.05 %, the S&P 500 by 2.58 and finally Nasdaq hit the roof by going up 2.94 %.

Good news?

There were however also good news to the market. General Electic has announced that the company will stick to their promis in turns of dividend. Further the car producer General Moters, Ford and Chrystler got support from the labour unions, who will try to help cutting costs, convincing the government to pass a financial helping package at 34 billion dollars.

Written by admin

december 16th, 2008 at 7:15 pm

Posted in business

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