Thursday, March 3, 2011

So Much for Resistance...Premarket Gappage on the Way

After a busy 2 days on Capital Hill, Bernanke is back in the turret and futures are surging. ;)

That resistance at S&P 1314 will be smoked in premarket - as almost any resistance level the past 2 years has been taken care of.

Weekly jobless claims came in at a 368,000 - the lowest we've seen in some 2+ years.

Amazingly, after quarters of incredible productivity growth out of the U.S. workers we still saw a 2.6% print today for the fourth quarter.  Which is good on the surface but when you combine it with a 0.6% drop in unit labor costs, it continues to paint a fantastic picture for corporate profits but not so much for the labor force.
  • Productivity increased at an unrevised 2.6 percent annual rate, the Labor Department said on Thursday. The growth pace was in line with economists' expectations.  
  • Productivity, a measure of hourly output per worker, grew at a 2.3 percent pace in the third quarter. For the whole of 2010, productivity expanded 3.9 percent, the fastest pace since 2002.
  • Depressed unit labor costs will help to keep inflation pressures contained at a time when rising oil prices are pushing up input costs for many businesses.   For the whole of 2010, unit labor costs fell 1.5 percent after declining 1.6 percent in 2009.

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