Did You Catch This Surge?

September 7, 2001
Marc Dupee

Unemployment surged last month, blowing away consensus
estimates and capping the week with additional evidence that the economy may
not turn up as quickly as many observers have hoped.

Unemployment leapt nearly half-a-percent last month,
rising to 4.9% from 4.5% in July. Economic handicappers had expected an
increase to 4.6%. To many, the higher-than-expected number of layoffs —
particularly at factories — refutes the interpretation of Tuesday’s
National Association of Purchasing Managers survey index that the economic
downturn has reached a bottom.

Blue chips are getting hit the hardest, with the Dow
down 2.6%. The S&P 500 is undercutting its spring lows. The Dow is down
262 at 9578, the S&P 500 is off 22.83, or 2.10% at 1083.35 and the
Nasdaq is down 27.60 at 1677.69, or 1.64%.

Big-cap techs represented by the Nasdaq 100
(
NDX |
Quote |
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News |
PowerRating)
closed below the low close it set last April 4 and is currently setting a
new 52-week low in the 1340.00 area.

A scare that Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) could sink the market
today with a negative sales forecast in its earnings pre-announcement made
last night never materialized. Some pundits had forecast that the chip-making giant would state that sales would come in below the low-end of
forecasts. Although Intel said sales would be in the lower extreme of
estimates, the firm said it expects to meet the forecast range. INTC
gained nearly $1 in early trading, but set a new four-month low and is down
.11 at 25.99.

Did You Catch This Surge?

BUY THE FEAR, SELL THE GREED

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