Saturday, October 17, 2009

Mixed Economic Data Drives Up Oil Prices, But Depresses Wall Street

World oil markets and Wall Street aren't exactly in sync with each other. Friday's mixed economic news drove up oil prices for the seventh day in a roll, while other so-so economic news set the tone for a mild Wall Street retreat slightly below the magic 10,000 mark. Oil settled a little above $78 dollars a barrel.

While some signs point to a slow economic recovery which are driving up Wall Street, other continued signs of sluggish activity continue.

There are also a few hopeful signs that the federal economic recovery package funds are helping to ease unemployment as well. In Oregon, for example, new construction projects largely related to the federal stimulus projects reduced September's unemployment to 11.5% from an August high of 12.0%.

Retailers are also planning some super "Black Friday" specials to lure buyers as well. There is likely to be some awesome specials on big screen TVs, laptops and other electronic products. Some chip producers are reporting bigger orders recently to fill the expected demand of the retailers for product.

While the economy is still much like a walk on eggs, there are yet a few hopeful signs emerging that perhaps the corner might soon be turning with the bad economy. An economic pickup should also greatly benefit spending on entertainment as movies and Cd's should increase in sales for the upcoming Christmas holiday spending season as well.