10/03/11 – the Grio and CNBC Market Update
Investors continued to monitor debt talks in Europe last week. We also had quite a few economic reports to digest. The economy grew by 1.3 percent in the spring signaling slow growth but not a recession. New claims for jobless benefits fell by 37,000 to their lowest level since April and new home sales declines by two percent in August to a nine month low.
In the week ahead, we expect earning reports from Costco, Ruby Tuesdays and Yum Brands—the parent company of Taco Bell and Pizza Hut—as well as several key economic reports.
Where are the jobs? We will find out with the September unemployment report. In August, the unemployment rate remained unchanged at 9.1 percent as zero net jobs were created. African American unemployment jumped from 16.7 percent, while black teen unemployment soared to 46.5 percent, remaining the highest of any group.
We will get a read on manufacturing with the September report from the institute for supply management. In August, production dipped slightly to a 50.6 reading as the sector slowed down, but a reading over 50 signals expansion.
We will also gain insight on consumer finances with the August consumer credit report, which tracks credit card, auto and student loans. In July, consumer credit rose by 12 billion dollars—the biggest gain in three years—driven by a sharp increase in student loans. However, credit card use declined.
And that is your CNBC market look ahead for The Grio.com.