Springing Unemployment, GrubHub Grab and High Frequency Drama

Look out unemployment, here comes Spring…

Image courtesy of cooldesign/FreeDigitalPhotos.net

Image courtesy of cooldesign/FreeDigitalPhotos.net

Weather, that fickle pernicious economic backstabber couldn’t stand in the way of the 192,000 jobs that were added last month, according to The Bureau of Labor Statistics.  However, experts were expecting that number to be a bit higher. They’re still satisfied, though, since unemployment stayed at a stubborn 6.7% – but to be fair, experts weren’t expecting that figure to budge from its perch anyway. If that doesn’t make you giddy, then how about the fact that there were actually more jobs added in January and February than previously reported. I know you can’t stand all this excitement but wait…there’s more!  The private sector has replaced/regained/re…whatever all the jobs it lost since December 2007 – which was the beginning of the ugly, terrible, horrible period we abhorrently call The Great Recession.

GrubHub is taking a big bite out of Wall Street today…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

The latest IPO to grab Wall Street’s conditional love is GrubHub, the Chicago based online service that gets a commission from a restaurant every time YOU order from their website. The company which also owns Seamless.com and Menupages raised a hefty $192 million and the stock flew over 40% today. It’s currently serving over 28,000 eating establishments from San Francisco to London with sooooooo very many more businesses to go. Nothing like an established and profitable business to get the stock market to look your way.

High frequency trading: Insider or Outsider?

Image courtesy of rattigon/FreeDigitalPhotos.net

Image courtesy of rattigon/FreeDigitalPhotos.net

In the ongoing high-speed trader saga, following Michael Lewis’s book, “Flash Boys: A Wall Street Revolt” where he accuses some traders of rigging the stock market, US Attorney General Eric Holder joined in the fun: “I can confirm that we at the United States Justice Department are investigating this practice to determine whether it violates insider trading laws.” High-frequency/high speed traders use computer algorithms to execute transactions in milliseconds anticipating trades before they happen. Charles Schwab, the famed founder of the discount trading firm, called high-frequency trading a “growing cancer.” So clearly he’s not feeling the love there. Dems have ideas for taxing the practice into oblivion.  Republicans have plans not to pass those ideas. High-frequency traders have plans to continue what they are doing since they believe they provide liquidity to the market.




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