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Jobless claims rise above 400K mark

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Jobless claims for the week ended August 24th rose by 8,000 to 403,000 which was quite a bit more than the 385,000 level forecasted by economists. While a one week reading above the 400,000 level is not enough to prompt serious concerns about the job market, economists feel that a sustained increase above the 400,000 level does become a concern and would hint the economy is not growing at a fast enough pace.

Revised second quarter GDP stays at 1.1%

The Commerce Department reported this morning that there was no revision to its advanced release on the gross domestic products (GDP) issued last month, which showed the economy grew at a 1.1% rate. Economists were looking for a marginal revision higher to 1.2%.

There were three changes from the preliminary report to today's revised report, which offset each other. Inventory investment was revised up, perhaps a sign orders are on the rise. Consumer spending on non-durable goods, items such as food and gasoline, was revised up as well. Investment in structures, both residential and business, fell in the period.

Today's revised second quarter GDP shows the economy slowed markedly from the 5% jump in the first quarter, with the largest contributors to the slowdown from the first quarter being increased imports, weaker inventory investment and tamer personal consumption.

Roadway plunges 21% in pre-market

Trucking concern Roadway Corp. (NASDAQ:ROAD) $26.93 is trading down 21% to $21.25 in pre-market action after the company warned on its upcoming third-quarter earnings, projecting earnings will rise 10-20% from Q2 level of $0.30 EPS. That forecast implies EPS of $0.33 to $0.36, which is considerably lower than analyst's estimates for $0.52 EPS.

Stock futures lower

Stock futures have been deteriorating as we approach the opening bell and have traders looking at a lower open for stocks. S&P futures (sp02u) currently trade down 9.8 points at 906.70, NASDAQ futures (nd02u) are down 12.50 points at 933.50 and Dow futures (dj02u) are down 72 points at 8,610.00.

Fair value for the S&P 500 today is $0.26. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.82 and set for program selling at $-1.20. Fair value for the NASDAQ-100 today is $1.55.

If you would like to learn more about fair value and buy/sell program levels, please feel free to visit HL Camp's website at http://www.programtrading.com.

Jeff Bailey
Senior Market Technician
Option Investor

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