The article mainly talks about investors’ concern over high unemployment although a report showed smaller-than-expected job loss on the private sector. The expected high unemployment rate exerts great influence on the market as traders will not buy stocks until Labor Department’s monthly unemployment comes out on Friday. According to William Schultz, the chief investing officer for McQueen, investors’ confidence will be restrained until the economy begins to add jobs. It also talks about concern about whether business can increase revenue in the future. As the unemployment rate still remains very high, economists worry that businesses are hard to draw customers. Although 77 companies reported their quarter results which beat Wall Street’s estimate, investors do not seem to be satisfied with short-term revenue. Instead, they are look forward to robust long-term revenue.
---Jinglin Yang
I also read a depressing article pertaining to the unemployment rate, stating that during the recession job losses may have been underestimated by about a million. The Bureau of Labor Statistics releases the payroll revision tomorrow, with data from April 2008 to March 2009.
ReplyDeleteyou can read the article at: http://money.cnn.com/2010/02/04/news/economy/jobs_outlook/index.htm