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.
About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

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