Good News on The Economy Boosts Stocks

Many companies are starting to feel a little more optimistic today. And it’s little surprise. The stock market is rallying as reasonably good economic news filters in. First of all, Alcoa earnings offered a pleasant surprise for investors. Expected to report yet another quarter of losses, Alcoa instead turned out a good profit report. The materials company is expected to have benefited from the demand associated with Cash for Clunkers.

Other good news included better than expected retail sales data. Same store retail sales were stronger than expected in September, and that has provided some hope for the holiday season. While September’s sales won’t totally predict how well things go come the holidays, there is some hope that the new revival in retail sales is an indication that things are improving enough for a good holiday.

And, finally, the latest jobs data appears to be showing a continuing decline in jobless claims. While the labor market remains weak, there are indications that it is moving toward recovery, and hopes are high that the economy might start adding jobs sometime next year. After all, no real recovery can get underway unless people have jobs.

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