Bullish Signs For The Market. Also, Great Job Lange Financial Services!

[ 0 ] February 3, 2012 |

We want to commend Fred and Rob Lange at Lange Financial Services. They have been adamant about the economy getting better for at least the last year, actually since they called for Gridlock and a positive market before the 2010 Elections. They absolutely declared that we would not experience a ” double dip “, and were right on with regards to buying on weakness throughout the period. Good Job Guys!!!

Three Bullish Signs for Today’s Market

By Benzinga.com Feb 03, 2012 1:30 pm

We’ve got good news locally and out of Europe, and some industries have optimistic expansion plans.

There are three signs that the market is bullish right now:

1. U.S. Employment Data Is Healthy
The Department of Labor and Statistics Reported that Nonfarm Payrolls saw a growth of 243,000 people, over 100,000 more than expectations. Manufacturing saw an increase of 50,000 jobs, with private payrolls increasing 257,000. Analysts had hoped for growth of nearly 150,000 to employment figures after December saw a rise of 200,000 figures to the payroll. The unemployment rate fell again to 8.3%, prompting hopes that the American recovery is here to stay.

Analysts had expected slower growth than December 2011, due to temporary job layoffs, so the increase represents a sharp increase to previous figures, and suggests that higher employment will translate into higher consumer demand, which has recently disappointed in lower-than-expected figures due to continued deleveraging amongst American consumers. Still, higher employment will give a boost of euphoria that will likely pull markets up for the day.

2. European Shares Exploded

Earlier today, the FTSEurofirst 300 hit a new high, beating August’s previous high of 1,062 by almost a full point. European banks are up on optimism, bond yields are down, and hope in a rebound is strong as service and manufacturing data from Europe suggests growth might be on the rise.

Likewise, continued ECB support has given troubled eurozone economies the liquidity they desparately need and investors the confidence they need that rogue economies like Greece will not be cut loose. Greek bonds are still unsustainably high, far over 30% for ten year notes, but they are no longer climbing. Some investors are beginning to think that 2012 is the year of the recovery for Europe, even after weeks of analyst crooning over America’s chances of a strong resurgence in the new year.

3. Some Industries Are Betting on Expansion

Caterpillar (CAT) has announced that it is expanding operations in America. Toll Brothers (TOL) is betting on a growth in housing. Record-low mortgage rates may benefit Wells Fargo (WFC), which has doubled down on consumer mortgages with a renewed focus on the sector.

Financial, construction, and manufacturing growth is nowhere near the levels from the middle of the last decade, but they are also nowhere near the levels from the end of the last decade, either. While the financial recovery has frustrated many Americans both for being a jobless recovery and a transfer of wealth from the 99% to the 1%, as Occupy Wall Street reminded workers on Main Street, the truth is that increased productivity and greater cash reserves mean that there is more wealth in the country, even if that prosperity isn’t being felt across the spectrum.

With so much cash on hand, companies will look for expansion opportunities. Even the smallest hint of a spike in demand — such as higher employment figures — will nudge companies to grow operations. Not all companies are looking to grow, however. Fallen R&D spending at pharmaceutical companies and an extended — and many would say deserved — contraction of operations at investment banks mean that those industries are not as well positioned to grow as are consumer technology companies, food producers, and some retail shops.

Editor’s Note: This content was originally published on Benzinga.com by Samuel Richter.

Read more: http://www.minyanville.com/businessmarkets/articles/us-economy-us-jobs-data-economy/2/3/2012/id/39210#ixzz1lM2p46lK


Category: Economics, Lange Financial Services