Monday, February 4, 2008

Job Market Vs Yahoo bid.

The US economy looks dimmer than many expected. US could already be in recession.

Nonfarm payrolls fell to an estimated Negative 17,000 in January. Economists had expected a rise of 80,000 instead. It is an indicator of jobs creation in US. The last time US encounters a job loss is more than 4 1/2 years ago.

Despite such negative report, Wall Street rose nearly 1% on friday Closing. DJIA +92.83 NASDAQ +23.50 S&P 500 +16.87.

The reason? Microsoft put in a bid for Yahoo, and the offer was almost twice the going stock price. Microsoft plans to go head to head with Google, and they need Yahoo in their arsenal.

This news overshadowed the jobs report. Make us wonder if the Market had already factored the recession of the US economy. How interesting...

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