06th Mar 2010
Day Trading March 4, 2010 Economic Numbers
Chain store sales improved during the month of February compared to January as well as jobless claims fell 29,000 to 469,000 for the week of February 27th. Last week the initial jobless claims jumped to 22,000 to 496,000, which is the highest since November.
- A lower jobless claims number means a stronger job market and a healthier economy.
- A higher jobless claims number means a weaker job market and a declining economy.
- A 4-week moving average gives a better perspective on the jobless claims trend.
The combination of both improving chain store sales and improving jobless claims is signaling an improving economy during the rough winter months.
January rose 1.7% led by strength within the industrials sector, especially transportation equipment and aerospace. Factory orders advanced 1.0% in December on top of the 1.0% gain in November. Factory orders represent the dollar level of new orders for durable and nondurable goods and these are usually led by petroleum and coal price increases. However natural gas futures declined 4% after the government reported supplies fell less than last week.
January pending home sales decreased 7.6% to 90.4 compared to December. However pending home sales still remains above December 2008’s 87.1. Analysts project stabilization for home prices as new-home sales will remain low due to lack of construction while inventories are pulled down.
Pending Home Sales Index is a leading indicator for housing activity providing demand for housing and economic trends. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Equities to watch on these numbers include: Home builders, mortgage lenders, and home furnishings companies.
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Shamim Ziyaaudhin is one of the editors of TraderMongers.com, a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University.
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