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Oil prices affect economy, but will that impact employment.


Oil prices soared to hit yet another record high, but fell back a touch on good news from Iraq. The final close was $47.27 per barrel. The stock market responded to the news from Iraq by closing up 110 points and closed above 10,000 composite for the first time since August 4th. Shares in companies that had dropped earlier are now a bargain.

No major financial reports were due out today and Treasuries were affected by some profit taking. The 10 year note had its' yields close up 4 basis points. This treasury affects mortgage rates. Thursday brings the weekly unemployment reports and July's manufacturing report, which based on Monday's regional report has low expectations. Tuesday brought the consumer price index survey, which actually showed prices going down a bit and bond traders anticipate the Fed will not raise rates as aggressively as had been planned.

These reports are a mixed bag that don't really show the economy improving one way or the other. We'll see whether Thursday's reports may help clear things up a bit.

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