Thursday, September 18, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Jobs reports prompts swift market response

stevenson column sig

By
From page B7 | April 07, 2013 |

The jobs report for March came out, as usual, on the first Friday of the next month. It showed that 88,000 jobs were created in March, which might sound OK at first. But there’s a big problem with that figure. The economy needs at least 100,000 jobs to keep the economy on an even keel. Which means that, although we had an increase, it was not enough to support the notion that there is any underlying growth.

Actually, the front page article (April 5, “Large crowd attends job event in Fairfield”) about the job fair right here in town spoke volumes about the state of the economy. In a strong economy, naturally, there might be more openings than there are applicants. But when many more people show up for the limited number of jobs, it’s a sign that there’s little or no underlying growth.

On the other hand, unemployment did drop below 10 percent, but that might be attributed to fewer people looking for jobs. Of course, usually the unemployment report becomes a political football, with the party in power saying the figure is a sign of a recovery, while the opposition says it’s a sign of weakness.

It’s more common than not for political commentary to depend on which party you represent. I hope it’s not a sign of bias, but I think the market reaction is more important than any opinion from the talking heads on either side of the divide. of course, the eternal question is whether or not “the tape tells the tale.”

That’s a reference to the ticker tape to be found in many brokerage offices in years past. If the reaction to a statistic or an event was largely negative, the tape would show declining prices. The opposite was true, naturally, if traders and investors liked what they heard. Forgive me if I’ve mentioned this before, but more than 50 years ago I had a summer job as a quote clerk. This was in the days before terminals and computers made current stock prices readily available.

It’s hard to believe, but back then, the entire daily volume on the New York Stock Exchange, at least in the summer, was less than we see traded in 20 or 30 minutes in today’s markets. If I remember correctly, there was less of a reaction to economic statistics than we witness today. It might take hours, or even days, for the market to react to weekly or monthly figures.

I had the job, when I was as young as 8, to call on my parents’ behalf, a local brokerage firm and ask, “What’s the trend of the market?” Yuck. I didn’t even know what the question meant, and, at that age, I hated calling strangers for any reason.

Some days, I was obliged to make that phone call a second, or even a third time. Ah, the torture that parents can put children through. I bet the quote terminals were designed by someone who had gone through the same ordeal as a child.

In addition, the statistics that move markets these days were not even in existence back in the 1950s or early 60s. So, what accounts for the fact that, as our population has tripled, the volume on the New York Stock Exchange has gone up a hundredfold or more? The real question is whether, with all the instantaneous information we have, do investors make out better than they did 50 years ago?

Bud Stevenson, a stockbroker, lives in Fairfield. Reach him at Bsteven254@aol.com.

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Suisun council candidates all voice business-friendly platforms

By Ian Thompson | From Page: A1 | Gallery

 
Theatre DeVille in Vacaville closes

By Barry Eberling | From Page: A1 | Gallery

 
Focus on school attendance now, always

By Mayrene Bates | From Page: A2

 
Pepperbelly’s for sale

By Ryan McCarthy | From Page: A3

Jury selection begins in 2011 Fairfield murder trial

By Jess Sullivan | From Page: A3

 
Seniors get help at Kroc Center health fair

By Barry Eberling | From Page: A3 | Gallery

Drug court success stories tell their tales

By Jess Sullivan | From Page: A3 | Gallery

 
Suisun City Senior Center seeks holiday donations

By Susan Hiland | From Page: A3

Lunafest returns to Fairfield in November

By Susan Hiland | From Page: A3

 
Weather for Sept. 18, 2014

By Daily Republic | From Page: B10

 
Fairfield police log: Sept. 16, 2014

By Susan Hiland | From Page: A10

Suisun City police log: Sept. 16, 2014

By Susan Hiland | From Page: A10

 
.

US / World

Emotions mount on final day of Scottish campaign

By The Associated Press | From Page: A1

 
More than 2,000 homes threatened in California fire

By The Associated Press | From Page: A4

Maps provide early warning of California fire risk

By The Associated Press | From Page: A4

 
School district police stock up free military gear

By The Associated Press | From Page: A5 | Gallery

NASA’s Maven spacecraft reaches Mars this weekend

By The Associated Press | From Page: A5

 
US military role in Iraq raises combat questions

By The Associated Press | From Page: A5

Police: Ambush suspect was military re-enactor

By The Associated Press | From Page: A5 | Gallery

 
House grudgingly approves arms for Syrian rebels

By The Associated Press | From Page: A5

Ex-VA doctor: Phoenix report a ‘whitewash’

By The Associated Press | From Page: A5

 
Doctor says Toronto Mayor Rob Ford has cancer

By The Associated Press | From Page: A6

US scientist: Ebola unlikely to become airborne

By The Associated Press | From Page: A6

 
Liberia president praises US for Ebola help pledge

By The Associated Press | From Page: A6

Obama reaffirms opposition to US combat in Iraq

By The Associated Press | From Page: A6

 
AP Interview: Iraq premier says no foreign troops

By The Associated Press | From Page: A6

.

Opinion

Give new crime report a chance

By Kelvin Wade | From Page: A7

 
Why Obama needs congressional authority to wage war

By Albert R. Hunt | From Page: A7

Democrats shouldn’t rely on pot and gay marriage

By Ramesh Ponnuru | From Page: A7

 
Homeless find welcome in Vallejo

By Letter to the Editor | From Page: A7

 
.

Living

Today in History: Sept. 18, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Sept. 18, 2014

By Susan Hiland | From Page: A2

My brother fails to make an effort to when it comes to my kids

By Kathy Mitchell and Marcy Sugar | From Page: A9

 
Horoscopes: Sept. 18, 2014

By Holiday Mathis | From Page: A9

.

Entertainment

Directors Guild finds TV diversity hiring stalled

By The Associated Press | From Page: B4

 
TVGrid

By Daily Republic Syndicated Content | From Page: B4

U2 returns to iTunes Top 100 — 26 times

By Los Angeles Times | From Page: B4

 
.

Sports

Rodriguez gets 1st MEL soccer win since return to league

By Daily Republic staff | From Page: B1

 
Giants snap tie in 9th, beat Arizona to narrow gap in West to 2

By The Associated Press | From Page: B1

 
49ers’ Kaepernick fined for inappropriate language

By The Associated Press | From Page: B1 | Gallery

Sharks sign D Braun to 5-year, $19 M extension

By The Associated Press | From Page: B2

 
Rockets acquire Jason Terry, picks from Kings

By The Associated Press | From Page: B2

Panthers remove DE Greg Hardy from active roster

By The Associated Press | From Page: B2

 
Barry Bonds appeal heads back to court

By The Associated Press | From Page: B2

NFL, union agree to new drug policy, HGH testing

By The Associated Press | From Page: B2

 
Raiders rookie Derek Carr focuses on job at hand

By The Associated Press | From Page: B2 | Gallery

Pegulas’ bid to buy Bills OK’d by NFL committee

By The Associated Press | From Page: B2

 
FSU benches Winston for 1st half of Clemson game

By The Associated Press | From Page: B2

Umpire West suspended 1 game for grabbing jersey

By The Associated Press | From Page: B2

 
After making ‘mistake,’ Vikings bench RB Peterson

By The Associated Press | From Page: B2

.

Business

Brown signs ride-sharing insurance legislation

By The Associated Press | From Page: B5

 
US homebuilder confidence soars in September

By The Associated Press | From Page: B5

Anthem, hospitals join to offer new insurance plan

By The Associated Press | From Page: B5

 
Drag queens dress down Facebook over names

By The Associated Press | From Page: B5

Wells Fargo pays $290,000 in sex harassment case

By The Associated Press | From Page: B5

 
Fed signals plan to keep key rate at record low

By The Associated Press | From Page: B5

.

Obituaries

Margaret King

By Susan Hiland | From Page: A4

 
.

Comics

Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

 
Peanuts

By Daily Republic Syndicated Content | From Page: A8

Blondie

By Daily Republic Syndicated Content | From Page: A8

 
Zits

By Daily Republic Syndicated Content | From Page: A8

Dilbert

By Daily Republic Syndicated Content | From Page: A8

 
Wizard of Id

By Daily Republic Syndicated Content | From Page: A8

Sally Forth

By Daily Republic Syndicated Content | From Page: A8

 
Baldo

By Daily Republic Syndicated Content | From Page: A8

Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

B.C.

By Daily Republic Syndicated Content | From Page: A8

 
Garfield

By Daily Republic Syndicated Content | From Page: A8

Frank and Ernest

By Daily Republic Syndicated Content | From Page: A8

 
Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

Pickles

By Daily Republic Syndicated Content | From Page: A8

 
Baby Blues

By Daily Republic Syndicated Content | From Page: A8

Sudoku

By Daily Republic Syndicated Content | From Page: A9

 
Bridge

By Daily Republic Syndicated Content | From Page: A9

Crossword

By Daily Republic Syndicated Content | From Page: A9

 
Cryptoquote

By Daily Republic Syndicated Content | From Page: A9

Word Sleuth

By Daily Republic Syndicated Content | From Page: A9