Stocks rise on strong US economic growth

[Omaha Steve]

Source: AP-Excite

By KEN SWEET

NEW YORK (AP) - An unexpectedly strong report on U.S. economic growth pushed stocks higher Friday, capping off Wall Street's best week in three months.

The report, which showed the U.S. economy grew at a healthy 4.1 percent annual pace between July and September, is the latest positive piece of economic data investors have gotten in recent weeks.

"It's a fantastic signal that we're getting robust growth and it looks like it might be accelerating," said Jack Ablin, chief investment officer for BMO Private Bank in Chicago, which oversees $66 billion.

On Friday, the Dow Jones Industrial average rose 42.06 points, or 0.3 percent, to 16,221.14. The index ended the week up 3 percent, its biggest gain since the week of Sept. 13.

FULL story at link.


Read more: http://apnews.excite.com/article/20131220/DAAQBG780.html

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In this Wednesday, Dec. 18, 2013, file photo, trader Warren Meyers, center, works on the floor of the New York Stock Exchange. Investors continued Friday, Dec. 20, 2013 to breathe a sigh of relief that the U.S. central bank has committed to keeping interest rates low even though it has decided to start pulling back on its monetary stimulus. (AP Photo/Richard Drew, File)

[Left Coast2020]

1. Maybe thats where I should go to find a job

Don't know shit about stock market, but I can certainly learn.

[truth2power]

2. Another perspective, courtesy of Prof. Rick Wolff, at the Brecht Forum this month...

The Gov't. says that average household wealth rose 2.6% last month. Two-thirds of this rise is because of rising stock value. 10% of households own 80% of stocks. Ergo, this is good news for 10% of households.

One -third of the rise in household wealth was because of rising home prices.

So...if you don't own stock and don't own a home this doesn't concern you.

Things are still going to shit for most of the workers.

> > >

Please watch Prof Wolff's monthly talks on Global Capitalism. http://rdwolff.com for economic news without all the government crapola.

[JoePhilly]

3. Only took 2 posts to find out why this is actually bad news.

[truth2power]

5. Yes, and I might as well take the opportunity

to post more of what Prof. Wolff said...

The U.S. Gov't bailed out GM to the tune of $50 billion (of taxpayer money). They allowed the city of Detroit to go bankrupt with a net debt of $18 billion. Oh, and they only got $40 billion when they recently sold the stock. My comment, here: $10 billion up in smoke and the Baggers are complaining about a couple of dollars a day in food stamps so the poor can eat.

More importantly, the recent decision by the bankruptcy judge was "epoch making". The judge said that Federal bankruptcy law takes precedence over the Constitution of the State of Michigan, which allows Detroit to go to pensioners and cut their pensions. I don't know whether there's an appeal in the works, or not.

But, according to Prof. Wolff, "This is a message to every city in the country." Pension dollars are now available to creditors.

Furthermore, if you lend to a city or state, the interest you get is not subject to Federal Income Tax. So, what better place for the ultra-wealthy to park their money than to lend it and collect interest tax-free.

According to Wolff, the result of the Judge's decision was to "preserve the interests of the richest among us and stick it to pensioners. That's called class warfare".

But, never mind. Let's look forward, not back.



edit: changed the word "they" to "the poor". clarity.

[JoePhilly]

6. So the overall 4.1% economic number is wrong?

No.

You might as well argue that the drop of UE from about 10.2% in Oct 2009 to 7% now, isn't really a good thing because there are still unemployed people.

But that's the game around here. Any good economic news during the past 5 years is in reality, bad news.

Just wait for 2 or 3 posts to find out why.

[truth2power]

13. It's not that it's wrong. It's how it's measured and who benefits and

whether those who are working are making a living wage and whether pensioners are being negatively impacted and whether a poor person can manage to feed themselves on a couple of dollars a day and on and on.

Class warfare is a reality.

[DCBob]

7. Alot more than 10% have 401ks who are benefiting from this rise in the market.

No doubt the wealthy are getting a disproportionate amount from these gains but many regular middle class folks are benefiting as well.

[truth2power]

9. I expect you're correct about that...

I've never had a 401k, so I'm not up on the particulars, but I know 401k's are highly dependent on the stock market.

I'd be interested in what Wolff has to say about that.

[hughee99]

11. Yes, but do 401k gains really help those who need help now?

If a business makes a larger profit, they can add jobs or increase pay (though they may not). If a person makes more money, they can spend it (though they may not). If you're 401k makes more, you just have more money for when you retire somewhere down the line. Great for the future, but those gains don't do much to improve someone's current situation if they're struggling to pay bills.

[llmart]

12. Some of us it does.....

Retirees take distributions from their IRA's/401K's etc. so yes, it does "matter" to some of us.

I, for one, am glad to hear good economic news. I don't believe the 10% figure either because most everyone who lives in my retirement community (most of us are middle class retirees or semi-retired) has at least some of their money in the stock market.

[hughee99]

15. Yes, for those who retire, it certainly does.

I would guess that a vast majority of those with 401k plans have not yet retired, but I do see your point. The 10% doesn't sound right to me at all. Those with 401k plans and even pension funds may rely on the stock market performance.

[DCBob]

16. Well, yeah.. its a delayed effect until one retires.. unless you take early withdrawal..

which is what I had to do last year due to some urgent expenses. But its still a gain regardless.

[LiberalElite]

4. This is impossible -

we have a Socialist in the White House. MORE left-wing media propaganda.

[workinclasszero]

8. Hey american workers! Time to celebrate!

Oh wait.....


Guess I'll have a big ole heapin helping of Raman noodles to celebrate my 4 years frozen pay,yippee.

Maybe walmart and mcdonalds will come out with more helpful tips on how to survive on their slave wages!

[hollowdweller]

10. Here's what bugs me and what people should know

I was reading an article about how Boeing is fighting with the machinist union out in Washington.

Wanting to turn their defined pension into a 401.

Then I read that Boeing has made so much money they are doubling their stock dividends.


Then I read this article about McDonalds, and they actually paid more in dividends to their stock holders than in labor costs??

I mean fast food shouldn't labor be the top cost??

Anyway this article reminded me of those things.

I mean we all talk about inequality surely the fact that the mindset that investors should receive a higher proportion of profit than employees is a vital thing that we should be talking about if we want to do anything about inequality.

[madville]

14. My funds have been rising

they always do before they fall. I don't really count on the 401k type fund I have but when I get to retirement age hopefully it will have 200-300k in it that I can start drawing off of. With my current track I should have three pensions when I retire if they don't steal them and we don't go bankrupt,plus maybe Social Security at 62. It's all so tied together now though so if one of those fails the others will probably be in the shitter along with it.