Ya gotta love this e-mail from CNNMoney.com:
So what level has did the Dow reach, O friendly CNN e-mailer?
Could it possibly have been a nice round number? Like, say, 14000? You wouldn't want readers to pick up any unwarranted optimism, would you?
Both the NASDAQ and S&P closed near or above roughly 6-year highs.
If the stock market is a leading indicator, as it's generally considered, it appears to be "leading" to good things, press gloom and doom notwithstanding. I personally don't believe that the prospect of another rate cut is as important as the fact that the economy's fundamentals are still pretty strong. The Institute for Supply Management's (ISM's) Manufacturing Index for September was in expansion mode yet again, though at 52.0, it came in slightly lower than last month's 52.9 (go to middle of post).
Clearview Economics' take is this:
Overall take. This report shouts, “Moderate growth.” Production (54.6) grew moderately. Orders (53.4) grew moderately. Exports (54.5) grew moderately. Imports (53.0) grew moderately. Even employment (51.7, +0.4) is expanding—in contrast to the Labor Department’s count of manufacturing payrolls. Despite fears and even a few recession calls, this economy is still making good headway. The ISM says that the reading of 52.0 is consistent with 3.1% GDP growth. Right now, most people—me included--would be very happy with this level of performance.
..... What goes down must come up. Inventories are running very lean. The inventory component of this survey plunged to 41.6, a fall-off of 3.8 points. And this account for 0.4 points of the overall decline in the index. But in the end, this will be a good thing, as these goods will need to be restocked, requiring future production increases. That’s like money in the bank.
It looks like investors agree.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters
Editor at Large
Comments Policy
Tom, this is good news
October 1, 2007 - 15:42 ET by MikeBTom, this is good news which the media will spin into a negative context. But, it went up because "investors pin their hopes on more Fed cuts." If those cuts don't happen, then the market will drop, perhaps by more than the 200 pts it went up today.
For those who don't watch the stock market, be aware that the market frequently drops at the end of the week, mostly for the purpose of profit taking of any run up that occured during the week. It also drops at the end of the month, when pension funds sell off some of their portfolios in order to get the cash to send out to their pensioners. Individual stocks will also drop a little bit the day they go "ex dividend" if they pay out dividends to their investors.
In this case it is speculators who are running up the stocks, speculating that the Fed will continue to cut rates. The investors will continue with dollar cost averaging or other investment strategies. When the market goes down again, the investors will not be terribly hurt, but many of the speculators and inexperienced who are buying high and selling low will get hammered. When that happens, watch for the LibMedia to spin the correction as another end of the world scenario, bemoaning how evil capitalism is.
"A communist is someone who reads Marx. An anti-communist is someone who understands Marx." Ronald Reagan
Spin
October 1, 2007 - 18:43 ET by JDWThe market was above 14,1xx fo r a great deal of the day. The news media insisted on pushing Citigroup as the breaker yet it's announcement was good. Manufacturing grew... The last thing America needs is a tax increase, in any form.
JDW
CFR: Chung, Riady, Hsia, Trie, Huang, Hsu, Paw... Who's looking?
It's horrible how CNNMoney
October 1, 2007 - 16:02 ET by deus_ex_machinaIt's horrible how CNNMoney has sought to downplay the fact that the Dow reached an all-time high by using the words "all-time high" in the subject line.
The swooshing sound you hear
October 1, 2007 - 16:10 ET by Free StinkerThe swooshing sound you hear is Tom Blumer's point flying over deux's head . . .
CNN sent me a Breaking News
October 1, 2007 - 16:28 ET by JimboCNN sent me a Breaking News email today too - that Brittney Spears is losing her kids to her ex husband. BREAKING F**ING NEWS???? And the Dow breaking 14,000 isnt even mentioned???? They break their own records for rediculousness every day.
Jimbo says - "There is a fine line between freedom of speech and treason"
Jimbo... It is past
October 1, 2007 - 16:31 ET by bigtimerJimbo...
It is past pathetic what the msm think is important to us out here in the real world, living a real life.
Unlike them.
Well, gee whiz, Jimbo.
October 1, 2007 - 20:52 ET by MikeBWell, gee whiz, Jimbo. Where are your priorities? Anything to do with Brittney Spears is important. Who cares about the economy or that stock market thingy? Man, you sound like you'd think a report on al Queda setting off a dirty bomb in San Francisco would be more important to the world than Paris Hilton running out of her herpes meds. Get a grip, man.
"A communist is someone who reads Marx. An anti-communist is someone who understands Marx." Ronald Reagan
Here's how that one will read....
October 2, 2007 - 08:25 ET by JimboDirty bomb in San Fran??
CNN BREAKING NEWS: “Volatile mixture discharged in the cradle of liberalism”
Jimbo says - "There is a fine line between freedom of speech and treason"
Fox Business Channel
October 1, 2007 - 16:39 ET by 10ksnookerWill easily take up the slack, the audience and give accurate data. Coming October 15.
Then in December the WSJ will become the newspaper of record. here is a clip that shows how it will go ... http://patdollard.co...
Just in time for the 2008 election.
Now, that there's funny, I
October 1, 2007 - 21:43 ET by MikeBNow, that there's funny, I don't care who you are.
"A communist is someone who reads Marx. An anti-communist is someone who understands Marx." Ronald Reagan
HOW LONG...
October 2, 2007 - 12:49 ET by danybhoyYou wonder why CNNfn went the way of Enron? What I want to know is the over/under on how long it takes FoxBusiness to put CNBC out of business?
"Some of us are wise, some of us are otherwise" Mark Levin
Blast this horrible Bush
October 1, 2007 - 16:52 ET by Jinx McHueBlast this horrible Bush economy!
The folks who receive this email
October 1, 2007 - 19:02 ET by ding7777would know that if the market "surges 200 points" from Friday's close it would be in the 14,000 range "an all time high"
e-mails
October 1, 2007 - 19:25 ET by Tom BlumerI don't save the e-mails but I'm fairly certain it told me when the Dow fell below 13000 in mid-August.
I believe you are looking
October 1, 2007 - 19:31 ET by Roger the ShrubberI believe you are looking for these.
EVERYBODY PANIC, EVERYBODY PANIC, EVERYBODY PANIC
October 1, 2007 - 19:36 ET by lunaticcringeradiothis is what really pisses me off about how the liberal media spins the economy. not a damn word about record breaking high and not a word about how tax revenue has increased because of the tax cuts and the deficit had been getting paid down(donno now since all the spending increases since the last liberal congressional election).
i mean if you tallied up all the reports of how the stock market lost points, and you tally all the reports of the increases, you'd get negative numbers.
lunaticcringeradio
also i hope jim cramer falls face first into a gravel rake, not enough to kill him, just enough to give him brain damage so he can stop acting like an ass on his show and protraying market waves as a bad thing.
you want things to ebb & flow, that's how an enconomy keeps moving and quite frankly that's how the government when it doesn't tax an economy to death manages skims off even more of it's unearned share because the movement of money makes money.
Drain Bamage
October 1, 2007 - 19:43 ET by Free StinkerWhat do you mean "give" ?
That implies he already does not have brain damage . . .
Exhibit A: Just watch his show for 15 seconds.
Duplicate
October 2, 2007 - 08:25 ET by Jimboduplicate