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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: J D B who wrote (11590)	9/12/2002 8:44:52 PM
From: Bucky Katt	Read Replies (2) \| Respond to of 13094

Really, really bad market news, the turd is getting harder to polish... From the WSJ> A new report from the Commerce Department showing that the current account, the broadest measure of U.S. trade with the rest of the world, widened to a record deficit of $130 billion in the second quarter, a larger increase than was expected by economists. The report was one of a trio of new economic readings investors were grappling with Thursday. The Labor Department said jobless claims jumped by 19,000 to 426,000 in the week ended Sept. 7, surprising economists polled by Thomson Global Markets, who expected a drop of 3,000. (and they pay these "expert economists to be wrong?) The numbers were bad news, considering the frail economy has been counting on consumer spending to propel it, albeit in fits and starts. "This was the highest level of claims since mid-April, but at that time they were being distorted upwards by the requirement for some people claiming extended federally-funded benefits to refile," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. "The last time undistorted claims were this high was back in early December last year. "In other words, these are pretty awful numbers and, as far as we know, there are no mitigating circumstances." (duh) Mr. Shepherdson said if the trend continues, the unemployment rate's surprise drop in August may reverse and move higher again. (double duh) "There is nothing for investors to sink their teeth into ... Every rally in God knows how long has failed and that is discouraging," said Uri Landesman, portfolio manager at Arlington Capital Management. "We won't rally until a few companies start telling us things are improving and orders are getting better. We're not getting that." (triple duh) _____________________________________________________ Officials are also worried about the current account gap, and have warned the deficit is unsustainable and poses a risk to the U.S. and global economic outlook. They contend it will eventually need to be reversed, potentially sending the dollar plunging. International Monetary Fund Managing Director Horst Koehler said the deficit raised "concerns about the possibility of sharp and destabilizing movements in capital flows and exchange rates." A fall in the dollar also could fuel inflation as imports would be more expensive, some have warned. And the topper of the day> Greenspan noted that some budget restraints known as pay-as-you-go rules were set to expire on Sept. 30. "Failing to preserve them would be a grave mistake," he said, "for without clear direction and constructive goals, the in-built political bias in favor of budget deficits likely will again become entrenched." Ya think?