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Indosurya Weekly Report
Second Week, August 2010
Your Investment Partner
Economy Indicator
Employment data last week’s tear down U.S stock market
Stocks on U.S Wall Street directly weakened when the U.S Government announced the
employment and unemployment data in July 2010. Those data showed little chance for new
employment in the private sector. In fact, stocks on Wall Street showed a good performance
as a brilliant financial statements of the issuer. After the reports improved corporate
performance, appears disappointment of economic conditions that do not change from the
side of labor. U.S has lost 131.000 jobs. U.S unemployment rate stable at 9,5%, but 44% of
them lost their jobs for 6 months or longer. The unemployment rate is to be bad news, thus
making direct stocks fell. In the last week, the DJIA, S&P500, and the Nasdaq composite
index fell. However, the overall space of a week ago, most of US. Stock market showed an
increase.
U.S economy improving, more stimulus isn’t the answer
The U.S economy will improve slowly and another round of fiscal stimulus probably wouldn’t
be effective. A “major 2nd stimulus” might create more uncertainty and undermine confidence.
Companies concerned about demand won’t expand facilities or hire new employees until
sales have improved. The world’s largest economy may be cooling in the 2nd half of the year
as a scarcity of jobs limits consumer spending.
Retail sales in U.S probably climbed
U.S retail sales probably rose in July for the 1st time in 3 months as incentives spurred auto
purchases, indicating merchants are relying on discounts to spark demand. Other reports
may show consumer prices were restrained and the trade gap was little changed. Companies
added fewer workers than forecast last month, pointing to