Private sector loses almost 700,000 jobs in December
January 7, 2009 by admin
The economic roller coaster took another turn down on Wednesday as the latest report from ADP showed that the private sector lost 693,000 jobs in the month of December. The stock market which has experienced a nice start to the new year immediately turned lower on the news. The non farm payroll report is due to be released later this week.
This report is one of the key reports scheduled to be released over the next two weeks which will provide more clarity into the depths of the U.S. recession. The government has been working agressively since the credit crisis became a focal point in September to try and provide some relief for the economy. The new presidential administration will be working on their economic stimulus package they hope will be passed later this month that will take aim at trying to provide tax credits to companies that begin hiring in 2009.
Fixing the economy and restoring confidence with consumers will be extremely challenging with the problems in housing and employment continuing to turn worse. These two issues will likely be the largest obstacles for the government over the next twelve months. The Federal reserve continues to indicate a willingness to purchase mortgage backed loan securities, this move is aiding in keeping mortgage loan rates at historic low levels.
January 4, 2009
January 4, 2009 by admin
The stock market started the new year with a significant rally. The market finished up almost over 2% on Friday as the stock market broke above the 9,000 point level for the first time in the past thirty days. Oil prices will continue to be a major focus oin the near term as the conflict in the Middle East with Israel is pressuring global oil prices. The market rally could be short lived as the new year will bring on a batch of new economic reports including the December jobs report, which could signicantly move the market.
There is optimism that the overall economy could turn around by the second half of 2009 if consumer confidence and employment opportunities return. The housing market will be a major focus of the new administration and regulators during the first quarter of 2009, as most economists believe that the economy wont fully recover until home prices are stabalized. Mortgage rates are likely to remain attractive for the near term and fixed rate mortgage loan rates are well under six percent.