This morning, Treasury Secretary Geithner said that the economy will grow in the fourth quarter and into 2010. He was speaking before Congress in an effort to get them to pass financial regulatory reform.
Although the economy may be improving, that’s not yet being felt in the jobs market. New claims for unemployment held at 505,000 last week. That number has been failing recently so a pause is certainly not unexpected.
We also saw that the index of leading economic indicators rose for the seventh straight month in October. I think this underscores Secretary Geithner’s optimism. Still, the major indexes are down sharply today as is gold. The VIX, which is known as the “fear index,” is much higher.
GameStop (GME), the folks behind Madden NFL, posted a nice earnings increase today. The company made 31 cents a share for their third quarter, which ended on October 31. That compares with 28 cents a share a year ago. When we excluded special items, GME made 32 cents a share which beat Wall Street’s forecast by 2 cents a share. Despite the good earnings, I still think Gamestop is overpriced and rate it a Sell.