The Dow Jones Industrial Average gained 200 points today after the government reported that "third-quarter gross domestic product rose at a seasonally adjusted 3.5% annual rate." I suppose we have to dig deeper into what constitutes "seasonally adjusted" and "annual rate." When did all of the government reporting switch to "seasonally adjusted" data. Is it like daylight savings time for numbers? We spring them forward then adjust them back?
Anyway, it was enough for Wall Street to get excited about having watched the index close down over 100 points three times this week. All of the GDP excitement was not enough to lift it back over 10,000 points though, it currently stands at 9963. I am sure it will reach there tomorrow and then drop back next week continuing the mad triple digit flip-flopping that has characterized the market lately. Investors are back to over-reacting to every smidgen of "good" news and every smidgen of "bad" news. In my opinion, some of this news wasn't worth any movement at all.
The GDP figures adds more fuel to the "recession is over" fire despite the economic crisis still unfolding on the employment and housing fronts. This can only mean one thing, the stimulus package must be working because consumers have not returned to driving the economy at their usual rate unless they are handed $4,500 to buy a new car or $8,000 to buy a first house.
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