[/caption]Neither the leaks by Wikileaks, nor the pending firing of BP’s CEO Tony Hayward, seem to damper the stock market trading. Those happenings might not have had any bearing on the financial markets, but according to the Wall Street Journal, there were market variables and other forces, which contribute to the rise in the stock market.
Chief among the forces that made the stock market go north was the better than expected housing sales of new homes. Home sales is an important barometer of how the market is fairing . Look at what is involved in the building of homes: wood, nails, concrete, the paper work in permits . All these employ a number of people in their respective capacities; transportation, loggers, carpenters, lawyers, and clerks to enable someone the American dream of owning a home.
Federal Express's better than expected numbers also positively contributed to the stock market rise . This company is also a good barometer on how our economy is fairing. If consumers are shipping items in abundance, business in general must be picking up.
Fed-Ex earnings and positive outlook showed that it wasn’t only the tech companies, which were turning good earnings, but other non-tech companies were doing the same. As a matter of fact, over 71% of all companies are reported to have beaten Wall Street’s expectations.
If President Obama can see an improvement in the important employment numbers, we might be seeing the turn around all of us are hoping for. It must be noted that news from Europe helped too, because their banking system stress tests, for the most part, met the financial criteria… giving the investment public faith in the second most secured financial system in the world.
I hope these pockets of economic growth are nurtured to produce the needed broad based economic harvest.
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