On Tuesday, we got some good economic news when the Federal Reserve released its Beige Book economic report. The report indicates that the recession may finally be over. I realize this comes as little solace to the 15 million Americans still out of work, but the report is correct: Things are definitely getting better. This is merely the latest of many signals indicating an improved outlook for the economy. Another good sign came last week when the Institute for Supply Management’s (ISM) index of purchasing manager sentiment rose to 52.9 in August from 48.9 in July, crossing the important 50 threshold, which indicates the manufacturing sector is expanding. The fact that manufacturing activity is picking up bodes extremely well for future GDP growth (the measure of the total value of all the goods and services produced within an economy in a single year). Wall Street’s forecast for GDP growth in the third quarter is now up to 2.9% from 1.6% back in July. But it’s not just here where forecasts are improving. The International Monetary Fund said that it is revising its global growth forecast to just under 3% in 2010, which is up from the previous forecast of 2.5% growth. Economists at J.P Morgan now expect the euro zone to grow at a nearly 3% annual rate in the second half of this year—substantially higher than their previous forecast of only 0.5% GDP growth less than three months ago.
Its customers include brokerages, institutional investors and issuers of securities. I was pleased to see that Knight Capital is exiting the volatile hedge fund business, and it recently sold its Deephaven Capital Management subsidiary. Business has been very good lately. Knight Capital recently announced that its average U.S. equity trading volume was 3.8 million in July, up nearly 53% in the past year (the data for August should be out soon). The average daily value for trades the company executed in July was $22.5 billion, up 12% compared with a year ago and virtually unchanged from June. Knight Capital’s equity share volume last month averaged 10.2 billion, up 94% compared with a year-ago figure. As investors in general become more active in the coming weeks and months, I expect NITE to continue benefitting from volume increases. What’s more, the company plans to expand into Europe and Asia, which will open up new sources of revenue. It is for these reasons that NITE is a great buy.
Source: NASDAQ - US Stock Market
Its customers include brokerages, institutional investors and issuers of securities. I was pleased to see that Knight Capital is exiting the volatile hedge fund business, and it recently sold its Deephaven Capital Management subsidiary. Business has been very good lately. Knight Capital recently announced that its average U.S. equity trading volume was 3.8 million in July, up nearly 53% in the past year (the data for August should be out soon). The average daily value for trades the company executed in July was $22.5 billion, up 12% compared with a year ago and virtually unchanged from June. Knight Capital’s equity share volume last month averaged 10.2 billion, up 94% compared with a year-ago figure. As investors in general become more active in the coming weeks and months, I expect NITE to continue benefitting from volume increases. What’s more, the company plans to expand into Europe and Asia, which will open up new sources of revenue. It is for these reasons that NITE is a great buy.
Source: NASDAQ - US Stock Market
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