Monthly Archives: May 2011

What are the Economic Indicators now Indicating?

Recent economic indicators seem to be suggesting that any potential momentum that may have been mounting with respect to the U.S. economic recovery may be coming to a halt, or, at a minimum, slowing down. According to The Associated Press in a May 19, 2011 article entitled, “Ahead of the Bell: Leading indicators seen rising”, Economists believe that The Conference Board's index of leading economic indicators likely increased by 0.1% in April of 2011*. While this would mark the 10th straight monthly gain in this data point, it would also represent the slowest increase rate since August of 2010.Read more

Earnings Season Report Card – 1st Quarter 2011

Hewlett-Packard dealt a strong blow to what was seemingly shaping up to be a good 1st quarter earnings season for U.S corporations. Hewlett-Packard Co. reported a small increase in second-quarter profit and, perhaps on a more concerning note, lowered its forecast for the second quarter as well as for the full fiscal year citing weakness in the personal computer and services businesses. A further look into the 1st quarter 2011 Earnings Season Report Card perhaps signals another warning flag that perhaps the 1st quarter wasn't as strong as many believed and, further, that the economic recovery is not advancing at as fast a pace as many predicted.Read more

The Housing Headwind

Recent declines in home values have confirmed our belief, at Hennion & Walsh, that the real estate market recovery (or lack thereof) could be one of the areas that hold back any significant economic recovery gains in 2011. This belief stems not only from a review of existing sales activity in the residential real estate market but also from the historic number of defaults and foreclosures that took place in 2010 leaving a large inventory of available homes.Read more

Job Creations and Unemployment Increase: How is this possible an

One of Investors Business Daily’s headlines on Monday, May 9, 2011, was, “Private Hiring Best in Five Years, But Jobless Rate Rises.” With respect to the former, non-farm employment increased by 244,000 jobs in April of 2011, according to the Bureau of Labor & Statistics, beating Moody’s Consensus Estimate of 185,000 jobs. Interestingly, the private sector led the way this time around, adding 268,000 jobs while net increases in the public sector were actually slightly negative. Some investors seized on the news, potentially believing that the data results provide evidence that the economic recovery is transitioning from the days of Government led economic stimulus to a self-sustaining economy driven by the private sector.Read more