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US Economy (EoD Review): 3 year Auction, Santorum quits race

The hiring reports were the toast of the market with the 3.5 mln new hiring in February creating a new rush order interest in the markets, volumes rising 60% on the NYSE. The number of unemployed in the economy for each job were a low of 1.66 before the crisis, a peak of 7 in 2009 and were back to a respectable 3.66 this February. Meanwhile even as Goldman Sachs termed the Democrats the responsible fiscal choice, Romney campaign did get a breather as Santorum quit the presidential race leaving Romney only one target for his distinctive brand of television advertising going into the November elections that will likely return President Obama for a second term from January 2013.

speaking at CPAC in Washington D.C. on Februar...

speaking at CPAC in Washington D.C. on February 10, 2011. (Photo credit: Wikipedia)

Alcoa reported a surprising 9 cent profit or $94 mln in the first Q1 results. Its profits mean it wa sable to control production and costs in the downturn for the metal. JP Morgan will report on Friday with $1.16 in EPS already expected and I am guessing wildly that a 30% positive surprise could happen as many revenue estimates have probably not added the full strength of trading incomes from Q1

The 4 week and the 3 year auctions went off well with yields firming to 0.08% in the 4 week treasuries and 0.407% in the three year auction, only slightly off the peak yield in last month’s auction The US is now adding $1 T of debt every year and there seems to be no fiscal pressure back on thre Fed to change the monetary expansion into the next decade.

The new job incentives again likely to give additional advantages to existing hiring companies will still be appreciated for adding to the already on Hiring incentives from the act of 2010 for hiring unemployed and veterans  and the Social security credits that are rolled over almost every month

President Obama speaking to Alcoa employees on...

President Obama speaking to Alcoa employees on June 28, 2011 about the growth & future of manufacturing (Photo credit: Wikipedia)

Obama’s proposed hiring incentive would give employers a 10% tax credit for any increase in wages, whether from new hires or wage increases for existing employees. The credit would be calculated by comparing a company’s 2012 eligible wages, defined as Old Age, Survivors, and Disability Insurance wages, with its 2011 eligible wages. The credit is capped at $500,000 per employer, with an eye toward keeping it focused on small businesses.

Read more: http://business.time.com/2012/02/24/obamas-job-creation-tax-credit-cool-idea-bad-policy/?iid=biz-main-lede#ixzz1rgkk8lYK

 

The Economy Elections 2012 are now a straight one on one between two purveyors of the same Economic ideology, ready to face the bullet yet not ready with enough big spending cuts while a gridlocked Congress is far away from executing any decisions for one more precious year of short term gains for the markets volatility finally creeping up to above 20% and in that the bad days of the sell off may not last beyond Friday though Earnings outside Financials and Apple ( a sector of its own) are likely to be moderately to strongly negative

Meanwhile Tuesday’s small Business confidence number also remained in respectable territory ticking down to 92.5 from 94 after the dismal showing in the Friday Jobs report. However JOLTs data (Hiring report – Job openings and Labor turnover Report) was up before market open on Tuesday and Alcoa results came in handy.

More people quit the workforce in February signifying an increase in those getting a new job offer.

Back in Asia aviation traffic finally reported a double digit increase in passengers on year led by India running at more than 75% capacity despite capacity additions in Air fleet in 2011.

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One comment on “US Economy (EoD Review): 3 year Auction, Santorum quits race

  1. Gerardo Lewallen
    April 19, 2012

    Wow, great article.Really looking forward to read more. Cool.

    Like

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