Stocks were mixed today as the market is waiting for tomorrow’s labor report for September. A strong report means the odds of a Fed rate hike will go up and a weak report lessens the probability of a rate rise. At the close the Dow was off 12 points on light volume at 18,268. What’s odd about the current economy is that with the current unemployment rate at 4.9%, the GDP growth rate is stuck at a lowly 1.4%. Usually a low unemployment rate means a high GDP growth rate. Something is holding the economy back and so far I have not heard of anyone who has good data as to why. If anyone does please pass it on.
Shares of Twitter were blasted today after Google, Disney and Apple took their names off the list of potential buyers of the tweeting service. As they say in San Jose during Halloween “Trick or Tweet”. Salesforce appears to be the only potential buyer left in the game although this could change should Steve Ballmer decide to come out of retirement and continue his spectacular track record of overpaying for things.
Alaska oil reserves just got 80% bigger after Dallas-based private energy company Caelus Energy announce the discovery of 6 billion barrels of oil in the company’s Smith Bay lease between Prudhoe Bay and Barrow along the Arctic shore. Caelus said that as much as 40% of the find is recoverable meaning that Alaska’s proven reserves just went from 2.86 Billion barrels to 5.26 billion barrels.
WTI crude traded over $50 a barrel today while gold took another step back closing down $11.90 at $1,256 an ounce. The US Dollar hit a two month high compared to a basket of global currencies.