Americans Spend Their Savings at the Pump

Markets all ended up in lower than average volume trading today. The NASDAQ was the slowest, putting on only 0.41% of value, and rising 19.64 points to close out the day at 4,810.79. The S&P 500 led the day in real gains, adding 0.88%, or 17.60 points, to close today’s trading at 2,013.43. The Dow split the difference, and posted a gain of 0.82%. It gained 138.46 points and closed up to 17,050.75 at the end of trading today. This marks the first time that the the Dow has closed above 17k in nearly a month.

In overseas trading today, Asia was weak while Europe posted some slim gains.
Both Japan’s Nikkei and Hong Kong’s Hang Seng fell, while Australia’s ASX was up 13 points. The Nikkei lost 182 points, while the Hang Seng was down 161. Across Europe, markets were up. France’s CAC posted a gain of nearly 9 points, while Germany’s DAX was up 23. In London, the FTSE posted a gain of 38 points by the end of trading today.

Americans Spend Their Savings at the Pump

In a recent investigation by the JP Morgan Chase Institute, they found that drivers are spending the money they save at the pump, rather than saving it as has been widely reported. JO Morgan Chase thinks this is why companies like Olive Garden are doing so well, since nearly 20% of those savings are going into the pockets of fast casual chains.

Whether or not this is a big boost -- and for most rivers it’s actually a relatively small one -- any bump in consumer spending in a good thing. As we move into the holiday season, Americans still aren’t spending like they were in some of the better years of the previous decade. This increase in spending could bode well for Christmas sales around the country, which have been lackluster in previous years.

Bill Gross Leaves Pimco, Sues Former Employer

Legendary investor Bill Gross has just left Pimco for Janus, and he’s leaving chaos in his wake. According to recent details, Gross is suing Pimco, his former employer, for wrongfully ousting the former board member. According to allegations leveled by Gross, Pimco’s board of directors was engaged in a cabal, driven by “lust for power and greed” to get Gross out the door. Bill Gross left Pimco in September of 2014, and has since found a position with Janus.
Published on Oct 8, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2016. Content published with author's permission.

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