National News
Oil prices and jobs statistics pushed the stock market lower in the early part of August. The major indexes hit their lows for 2004 after the Labor Department issued a July report that stated the U.S. economy added 32,000 nonfarm payroll jobs in August, as compared to 235,000 jobs that economics had predicted. (The Denver Post, August 8, 2004). Despite that fact, consumer spending in the U.S. continues to be strong, with car buying leading the way, propped up by higher gasoline prices. (The Denver Post, August 8, 2004).
On August 10, the Federal Reserve Board raised a key short-term interest rate by a quarter of a percentage point, citing softness in the economy and the need to keep inflation under control. In return, stocks rose sharply, as Wall Street was reassured that economic growth would continue. (The Denver Post, August 11, 2004). Stocks were back and forth for the remainder of the month, pushed around by oil prices and earnings reports, some good and some bad.
Regional News
While the national rate of inflation rose, the Denver-Boulder-Greeley Consumer Price index declined 0.7 percent in the first half of 2004. Business owners and government planners are confused about the drop. (The Denver Post, August 19, 2004).
The Colorado unemployment rate rose to 5.1 percent in July from 4.9 percent the previous month, following the national trend of minimal job growth. There are still more people on payrolls than there were a year earlier. (The Rocky Mountain News, August 21, 2004). A local economist says that hiring in metro Denver in 2004 will fall well short of expectations. (The Denver Post, August 26, 2004). Good economic news did follow that announcement, with a survey showing that 2,100 more metro job openings than the previous spring. Government and health care jobs led the vacancy list. (The Denver Post, August 27, 2004).
Regional Stock Winners for August
Top gaining stocks for the end of August were as follows:
HEI Inc. Flextronics International Raindance Communications SpectraLink Corp. Applied Films
Regional Stock Losers for August
Top losing stocks for the end of August were:
ConAgra Inc. Par Technology Group Lockheed Martin Corp. Banc One Corp. Novartis Group Magna International
(Boulder County Business Report, Sep. 3-16, 2004)
