Let’s put things into proper perspective after today’s magical rally of 150.91 points for the DJIA. (Remember that yesterday the DJIA was down 142.21 points.) Why the sharp rally? Well, according to the bull-tarts over at CNBC, the sharp rally was due to the 34,000 drop in “Initial Jobless Claims to only 407,000. Wow! That is really great news when only 407,000 individuals were added to the unemployment rolls. That is really great news for our economy moving forward. Ya, right! We are still not creating jobs. Folks, we just expanded the unemployment rolls by over 400,000 individuals.
Now, what CNBC failed to mention was that U.S. Factory Orders plunged in October by the largest amount in 21 months. (Not good.) Further, we learned Wednesday that Durable Goods Orders fell 3.3 percent in October, the biggest drop since January 2009. Also, we learned today that New Home Sales fell in October to a near record low, down 8.1 percent to 283,000 units, just slightly above August 2010's number of 275,000, which was the worst ever reading since records started in 1963.
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