One British university global warming huckster steps down and another huckster professor at Penn is under investigation for seeming to advocate false data. The global warming fraud that socialists created to push global wealth redistribution via "cap and trade" CO2 emission permits is beginning to finally unravel.
World Outlook
GM and communist China are planning a joint venture to sell cars in India.
Obama lacks the credibility of FDR who was well educated. Obama has zero education in finance. That was obvious when he showed he did not know that Wall Street is the market where capital is raised to expand industry and create jobs. Obama still thinks government creates jobs but government only spends other people's money and therefore can only redirect where the American invests. If the money is not spent more intelligently than the average American spends it then it is wasted.
John F Kennedy spent $3Trillion on the NASA project to put Americans on the moon. Many in Obama's administration apparently thought that the NASA funding was a waste and should have been spent on socialist education, and wealth redistribution. But NASA funding lead to new technologies that created the new markets for computers and electronics. John F Kennedy had enough intelligence to know that government wealth redistribution hurts job creation. Instead John F Kennedy knew a tax cut for conscientious hard working Americans would stimulated job creation. So that is how he got America out of his recession in 1962 just like Reagan got America out of the recession in 1982.
Both these presidents knew that it was not smart government policy to take money from smart taxpayers to give it to people who could care less about America.
Market Outlook:
The NYSE is now 2.5% below the required sustainable cyclical bull market's head level and thus is still a declining shoulder. It is not looking good for a continuation of the current market. The $800Billion stimulation package has been spent but does not create jobs. Obama, the community activist, did not know that one only buys votes that way. Americans are increasingly unhappy with Obama's socialism.
This week:
The U.S. economy ended November on a 15 month high as the Chicago purchasing managers index unexpectedly rose to 56.1 from 54.2 in October, the Institute for Supply Management-Chicago announced Monday. Readings above 50 indicate an expansion. High-end housing prices and sales have now bottomed but low-end housing is still fraught with foreclosures.
Dec. 1:
The US manufacturing sector expanded for a fourth month running in November but at a slower pace than expected, a private survey showed Tuesday. The Institute for Supply Management said its manufacturing index fell to 53.6 percent from 55.7 percent in October contradicting the more positive results yesterday in Obama's home city of Chicago which Obama showers with American taxpayer money.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September that is at the highest level since March 2006 when it was 115.2.
US construction spending surprisingly remained unchanged in October after September's drastically revised decline of 1.6%, the largest decline since January.
The pace of U.S. job losses slowed in November, according to two reports released Wednesday.
Outplacement firm Challenger, Gray & Christmas Inc. reported that 50,349 jobs were cut in November, 9.6% less than in October. It was the lowest total since December 2007, when 44,416 layoffs were announced.
Economic conditions are progressing 'modestly' amid signs of improvement in the troubled labor market, the Federal Reserve said in its Beige Book survey on Wednesday.
Unemployment Claims were down again for the third time in a row.
Productivity in the second quarter was revised down with the Labor Department's second estimate for the quarter. Third quarter productivity was revised down to an annualized 8.1 percent increase from the initial estimate of a 9.5 percent surge.
ISM non-Manufacture Index yesterday
Business Activity Index at 49.6% down 5.6%
New Orders Index at 55.1% down 0.5%
Employment Index at 41.6% up 0.5%
WHAT RESPONDENTS ARE SAYING ...
"Capital markets remain very tight; lenders are not releasing funds for development projects, limiting expansion." (Accommodation & Food Services)
"Fourth quarter still looking grim, but potential upturn for Q1 2010." (Professional, Scientific & Technical Services)
"No one trusts that the recovery is real. Seems everything and everyone is in a holding pattern." (Public Administration)
"Business is still flat." (Wholesale Trade)
"U.S. business remains better than 2007 levels, although it's been through personnel and cost reductions that we are now profitable. Business continues to be about 8 percent below 2008 levels." (Real Estate, Rental & Leasing)
Potential market movers. Today Friday, Dec. 4:
Labor Dept. Jobs Report.
Factory Orders
Market forces December 4
We estimate the NYSE must still rise 1.4% from yesterday's close to be interpreted as a continuing rally not a declining head and shoulder sell signal. That reflects both the price change and volume of shares being traded. The market already looks like it is topping out. In any event after a possible Santa-Claus rally a normal -3% to -5% downward correction would be due anyway… so it is still wise to take profits were possible. If the head and shoulders sell signal occurs the correction could be closer to -10% to -15%.
Asian markets were mixed over night; China up 1.6%, Hong Kong down -0.3%, India down -0.5%, Japan up 0.5%, Seoul up 0.6% and Taiwan down -0.4%.
European markets are lower with the average in a range from -0.5% to -0.7% this morning about half way through their day.
US pre-market futures are up about 0.2% today at 8:30 AM EST.
It is important to be able to take stock profits before January if the broader market of the NYSE does not set a new high at least 2.5% above yesterday's closing price and on above average volume. Continuation with the current market bubble looks like it now will be a bumpy lateral ride.
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