Wealth Tax, Stocks Rocket, Budget Trillions

  • February 1, 2010
  • David Goodboy

Stocks rocketed higher today on the heels of solid earnings from Exxon and surprisingly positive results from the manufacturing sector. Obama announcement of a proposed budget of $3.8 trillion for 2011, complete with a tax on the highest-wage earners, did little to stem the bullish surge. U.S. manufacturing expanded the greatest since 2004 while over 80% of earnings since January 11th beat estimates. The DJIA responded by surging +118.20 to 10185.53, the Nasdaq advanced +23.85 to 2171.20 and the S&P 500 marched higher by +15.31 to 1089.18.

^C^: Advanced 0.30% or 1 cent to $3.33/share after it was discovered that they plan on selling or spinning off the Citi Private Equity Unit.

^F^: Climbed 2.58% or 28 cents to $11.12/share as a Toyota sales stoppage slowed their competitor.

^AMD^: Was upgraded to “market outperform” at JMP Securities sending shares higher by 6.97% or 52 cents to $7.98.

Oil added $2.02 to $74.91, gold advanced $21.50 to $1105.00 and the VIX index dipped 8.20% to 22.60.

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Market Snapshot

Dow

 +118.20 10,185.53

NASDAQ

 +23.85 2,171.20

S&P 500

 +15.31 1,089.18
Economic
News

Personal Income (Dec): Consensus: 0.3%, Prior: 0.5%, Revise From: 0.4%

Personal Spending (Dec): Consensus: 0.3%, Prior: 0.7%, Revise From: 0.5%

Construction Spending (Dec): Consensus: -0.5%, Prior: -1.2%, Revise From: -0.6%

ISM Index (Jan): Consensus: 55.5, Prior: 54.9

Pending Home Sales (Dec): Consensus: 1.1%, Prior: -16.0%

Auto Sales (Jan): Consensus: NA, Prior: 4.14M

Truck Sales (Jan): Consensus: NA, Prior: 4.49M

Challenger Job Cuts (Jan): Consensus: NA, Prior: -72.9%

ADP Employment Change (Jan): Consensus: -40K, Prior: -84K

ISM Services (Jan): Consensus: 50.9, Prior: 50.1

Crude Inventories (01/29): Consensus: NA, Prior: -3.89M

Initial Claims (01/30): Consensus: 454K, Prior: 470K

Continuing Claims (01/30): Consensus: 4600K, Prior: 4602K

Productivity-Prel (Q4): Consensus: 6.0%, Prior: 8.1%

Unit Labor Costs – Preliminary (Q4): Consensus: -2.5%, Prior: -2.5%

Factory Orders (Dec): Consensus: 0.6%, Prior: 1.1%

Nonfarm Payrolls (Jan): Consensus: 13K, Prior: -85K

Unemployment Rate (Jan): Consensus: 10.0%, Prior: 10.0%

Average Workweek (Jan): Consensus: 33.2, Prior: 33.2

Hourly Earnings (Jan): Consensus: 0.2%, Prior: 0.2%

Consumer Credit (Dec): Consensus: -$9.5B, Prior: -$17.5B