Stocks rally after strong housing report
Builders break ground on the most new homes in nearly 4 years, though building permits are down. Investors await the Fed's Beige Book survey of business conditions. B of A tops forecasts.
By Andrea Tse
Stocks rose Wednesday as investors digested some hopeful numbers in the homebuilding sector and awaited the Federal Reserve's Beige Book survey of economic conditions.
The Commerce Department reported that housing starts rose 6.9% in June to a seasonally adjusted annual rate of 760,000 from May's upwardly revised 711,000. That's the highest since October 2008. Economists surveyed by Thomson Reuters had expected 745,000.
Building permits fell 3.7% to a seasonally adjusted annual rate of 755,000 from the upwardly revised May rate of 784,000. Economists had expected 765,000.
At 2 p.m., the Fed's Beige Book survey of business conditions in 12 districts will be released. The report arrives two weeks before the Federal Open Market Committee convenes for its next monetary policy meeting.
Stocks finished solidly higher Tuesday as above-consensus earnings reports helped investors move past the latest evidence that more monetary stimulus is unlikely from the Fed this summer, in the wake of Chairman Ben Bernanke's downbeat appearance before Congress. Bernanke heads into the second day of his semi-annual monetary policy testimony before the House Financial Services Committee at 10 a.m.
Bank of America (BAC) reported second-quarter earnings of 19 cents a share. Revenue decreased 1% from the previous quarter to $22.2 billion. Analysts were expecting earnings of 14 cents a share on revenue of $22.9 billion.
Intel (INTC) delivered an above-consensus profit for the second quarter but tempered revenue expectations for the full year.
Yahoo (YHOO) posted quarterly earnings Tuesday that topped expectations, but revenue came in a bit light. New CEO Marissa Mayer wasn't on the Internet company's earnings conference call.
Credit Suisse (CS) raised 8.7 billion Swiss francs ($8.9 billion) to bolster its capital base. The bank also said second-quarter net profit rose 2.6% to 788 million francs from 768 million francs a year earlier.
NEW YORK (TheStreet) -- "The average investor's 20 year annualized return is astounding simply because of how awful it was."
"According to an analysis by Dalbar, the average investor earned 2.1% over the twenty year period ended Dec. 31, 2011."
"After including inflation, the average investor got a negative real return. Inflation (CPI) grew at an annualized rate of 2.5% during the period. So the average investors' net real return was -0.4%."
We've also learned in the last couple of days that more people than ever are withdrawing their 401k money early and using it pay for living expenses. Wonder how terrible those returns are when you factor in an early withdrawal penalty?
We were sold a pile of bologna and told it was prime rib.
Was reading the Article about Peregrine Financial......when the CEO say's "it was relatively easy."
Seem's to me that would be "throwing down the Gauntlet" and should really piss the Regulators off ?
Maybe it can light a fire under them, to get busy; For starters put a few in jail like everyone wants.
Every person in Congress should be paying attention to the ECONOMY! Stop with these distractions!
Even IF President Obama could be impeached, he would likely remain in office for the NEXT SEVERAL MONTHS! - Remember Clinton??? AND Do you really want Joe Biden as POTUS in the interim?!
The MAJORITY of Americans' #1 CONCERN is the ECONOMY!!! Stop with the lunacy!!!
Housing starts and permits haven't been on the same page for a few months - rendering those numbers mostly meaningless.
It's almost comical that Peregrine paid SEC fines with client money - wonder if the gov will give that money back - don't hold your breath.
It hard to believe the housing numbers when in Florida,
1 - the foreclosure rate for the 1st 6 months of 2012 is up 23% over last year. 5th highest in the nation.
2 - Existing home home prices & permits on on the rise, but existing ones are sputtering.
3 - Our population growth is flat with a forecast average of 1% from 2011-2014.
4 - and last, our personal income grew a whopping 0.7% in the 1st qtr. 38th in the nation.
So anyone think that the housing numbers are manipulated ? Past history says yes!!
If the USA decided to split into 2 countries would you (certainly just hypothetical)
Thumbs up - make a move to live with people of your political belief
Thumbs down - stick it out where you live.
no doubt. think about it. who would take a job as regulator? if you KNOW that stuff, wouldn't you be IN the industry?
most accountants i know START as auditors, then get an accounting job where they LEARN the tricks on how to get thru auditors.
i'm sure the regulators are staffed with easy green young early graduates in business.
>>>>>Deceiving regulators was "relatively simple."<<<<<
Peregrine Financial CEO Russell Wasendorf spent most of the missing client money to cushion his trading firm's capital, fund a new corporate headquarters, and pay regulatory fines, according to previously undisclosed parts of the letter Wasendorf wrote before attempting suicide. Deceiving regulators was "relatively simple."
The Obama administration seems now to endorse folks to act out by berating and voting down successfull people because their success makes them uncomfortable. Isn't this what Hitler did in the 30's? When you demonize someone for their success because it makes you feel better you have stumbled and fallen into the gutter. I would say put your energy into making yourself more of a success!
i know we're just chump change, but where i am sales/bookings are down 12% from last year. since OUR product rolls into other manufacturer's production lines this isn't a good indicator of work ahead.
we absorbed 2 other companies. that's why i'm still here. helping blend other company products into this place because of course, the other 2 places are gone and THEIR people are on unemployment now.
>>>>>>>More interested in a solid S&P and a RUT moving over 1400 and 850 respectively.
Then I would consider the recovery back on a sounder footing...<<<<<<
Are you honestly trying to say that the Dem party does not protect the elite wealth class as well?
If so, the brainwashing is strong in you.
We have the highest number of non-working people since WWII.
"Obama wants to repeal tax cuts for over $250,000 per year, is that protecting the elite."
It would be really interesting if the Republicans could word the tax for the 1%ers in such a way that the "Socially Rich" - (rich through sports, stocks, movie actors) would not get as good a deal as the "Manufacturing Rich" - (rich through patents and producing products) - Then we could see the real face of today's politics - Rich vs. Rich........ out in the open.
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[BRIEFING.COM] The stock market finished the Thursday session on a higher note with the S&P 500 climbing 0.5%. The benchmark index registered an early high within the first 90 minutes and inched to a new session best during the final hour of the action.
Equities rallied out of the gate with the financial sector (+1.1%) providing noteworthy support for the second day in a row. The growth-oriented sector extended its September gain to 1.9% versus a more modest uptick of 0.4% for the ... More
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