Here is why the futures shot up----

Discussion in 'Trading' started by Warrior4g, Dec 5, 2007.

  1. ECONX Q3 Unit Labor Costs -2.0% vs -1.2% consensus, revised from -0.2%

    08:30 ECONX Q3 Nonfarm Productivity 6.3% vs 5.9%, revised up from 4.9%

    these are the 2 things the fed was most worried about regarding inflation. these were great numbers and paves the way for the fed to move without hesitation. this is only one quarter but its still very encouraging--for now.
  2. The Fed was going to cut 50 bp anyway, the data didn't matter. Its not about the economy, its about the banks.
  3. maxpi


    Good analysis, thanks..
  4. I've been curious to know if there is a correlation between the GDP and dollar? IOW with the very low $ is that the reason for the higher GDP? If the dollar grew strong would that cut the GDP?
  5. S2007S


    seemed the reason that cnbc gave was for that great ADP report that showed about 189,000 new jobs for the month of November.

    Just to let all those know that if the job numbers come in north of 150,000 the fed is probably only going .25. If by some odd chance the economy adds another 190+ the thought of a rate cut should be forgotten.

    Remember the last 400+ points of this upward move in the dow is on anticipation of a 50BP cut move, no move of that sort and the markets could easily drop 2-3%.
  6. S2007S


    agree with that, so i guess it seems that we should push all economic data aside for the time being and only concentrate on 50bp cuts for the next 18 months until the rates get down below 3%. By then the economy will be booming, however inflation will be skyrocketing.
  7. gnome


    Inflation is already at 10%... so what is "skyrocketing"? 15%? 20%?
  8. Just out of curiosity - what are the specifics of how the gvt is cooking the books on inflation these days