Stocks edge higher on mixed economic reports
Consumer confidence declines for a fourth straight month, while home prices rise in most major US cities. Worries over Europe's debt crisis persist as Spanish borrowing costs soar. News Corp. may split up.
By Andrea Tse
Stocks rose Tuesday on reports showing a drop in U.S. consumer confidence and signs of improvement in a key home price index.
Stocks closed sharply lower Monday as investors fled riskier assets on concerns about Europe's ability to address its escalating debt problems. The latest batch of worrisome headlines included Cyprus' reportedly asking for a bailout, the resignation of Greece's finance minister, and Spain's making a formal request for funding to solidify its banking system.
The U.S. Conference Board on Tuesday reported consumer expectations declined for the fourth month in a row, the lowest reading since November. The June reading fell to 62 from a downwardly revised 64.4 in May. Economists had expected a reading of 63.5, according to a Reuters poll.
April home prices were up in nearly all major U.S. cities, The Associated Press reported Tuesday, adding to evidence of a recovery in the housing market. The Standard & Poor's/Case-Shiller home price index showed increases in 19 of the 20 cities tracked. It's the second straight month to show an increase. A measure of national prices rose 1.3%, the first increase in seven months, AP said.
In Europe, German market research group GfK predicted that its consumer sentiment index for Germany will improve in July for the first time in five months, rising to 5.8 from 5.7 in June, as an improvement in income expectations helps offset worries about the economic impact of the eurozone turbulence.
The FTSE in London was down 0.07%, and the DAX in Germany was up 0.07%.
The Spanish Treasury sold 3.077 billion euros ($3.850 billion) in three-month and six-month treasury bills Tuesday at much heftier borrowing costs than in the prior month as investors grew more and more concerned that the country will have trouble handling its debt as it requests financial aid for its shaky banking sector.
The Hong Kong Hang Seng index closed up by 0.45%, and the Nikkei in Japan settled down by 0.81%.
News Corp. (NWSA) is considering splitting into two companies, separating its smaller publishing business from its entertainment businesses, The Wall Street Journal reported, citing people familiar with the situation. The split would carve off such assets as 20th Century Fox film studio, Fox broadcast network and Fox News channel from News Corp.'s newspapers, book publishing assets and education businesses. News Corp. owns the Journal. A final decision on the split hasn't been made, according to the Journal. News Corp. chairman Rupert Murdoch has previously opposed such a move but has recently warmed to the idea, said one person familiar with the situation.
Facebook (FB) named Sheryl Sandberg, the social-networking company's No. 2 executive, to its board. Sandberg, Facebook's chief operating officer, is the eighth member of the company's board and its first woman.
LDK Solar (LDK) posted a loss in the first quarter Tuesday of $135.8 million, or 1.46 cents per American depository share, a reversal from year-earlier profit of $135.4 million, or 95 cents per ADS. Net sales fell 74% to $200 million from $766.3 million a year earlier. Analysts were expecting LDK Solar to post a loss of $1.14 per ADS on revenue of $225.5 million, according to Thomson Reuters.
Apollo Group (APOL), the operator of the University of Phoenix, reported fiscal-third-quarter adjusted earnings Monday of $1.20 a share on revenue of $1.13 billion, beating analysts' estimates of a profit of 97 cents a share on revenue of $1.12 billion. Apollo forecast revenue of $4.2 billion to $4.3 billion for fiscal 2012.
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Both parties..... ONE IN THE SAME!
Did you know that even if every registered voter in the USA signed a petition asking for a vote to cut the pay of the politicans in Washington they would not be required to hold a vote.
No framework for a national initiative stinks........ democracy...... What democracy?? We get to vote on what they offer. We get to vote on who they offer. I'm sick of the lawyers in DC.
Just imagin yourself walking up to your neighbors door with a clip board and petition. Hi neighbor we have decided that the politicians in Washington need to be on Social Security just like the the rest of us citizens instead of having lavish pensions even after only a year of service.
Would you like to sign this petition to force a national vote on this issue? HELL YES I DO
Not going to happen..... democracy....... what democracy?
Along with delaying the spending cuts.....Are not letting the Bush Tax Cuts expire either; Until after the elections....
Everyone of the bastards are posturing for election votes, and don't give a damn about what is happening to the average American......And just kicking it down the road to get re-elected.
Anyone that doesn't see that, has to be completely blinded by partisan politics...And doesn't care much about America either.
Yeah they should all be voted out.....
A read on Consumer Confidence = A vote of NO Confidence in goverment, banking and our beloved PRESS who is here to protect us and give us accurate information ! GO FIGURE !
This is the crux of this whole article -
"Consumer expectations declined for the fourth month in a row, the lowest reading since November"
Consumers will bring us out of this mess when they fill confident in their job security and NOT THE STUPID FEDERAL GOVERNMENT.
EXAMPLES GOVERNMENT WILL NOT HELP:
1. cash for clunkers
2. 0.00% interest rates - if we had real interest rates the FED could not pay the interest on the debt!
3. printing monoploy money like there is no tomorrow
4. demonizing anyone who has worked to make any kind of wealth
5. housing tax incentives including tax rebates and reducing the principal for people who owe more than the house is now worth. -No job, no down payment, can't afford - no problem!
6. forcing financing on solar and wind power and demoanizing fossil fuel - we do not have the pwoer grids to handle electric cars as the primary fuel - how much money have we (THE TAXPAYER) lost just this year in these type loans - these were what i will call SUBPRIME ALTERNATIVE ENERGY LOANS!
Sorry to those who played by the rules - you get ZERO help!!!
After the 08 market rip off took down the world economy and destroyed the retirements of millions of American workers they are having a hard time proving they have any credibility left. Facebook IPO debacle, JPMorgan derivative flop soon after the derivatives in the hedge funds mess of 08, just now passed a bill to stop insider trading in congress.
Wall street will find it harder to find any chumps to rip off, they destroyed the middle class so the small or individual investor is going to be hard to find. I mean really how many times can you stick your hand in the fire and not learn from it. The market survived and thrived on trust and credibility, deregulation, Ha! Trust me and trust us is a joke, they have ruined the good faith and integrity of institutions over a 100 years old. The big bonus theory makes for some stupid bets in the market place, always trying to go for the bit score to impress the board members. They got the common sense rules that seperated the commercial banks from Wall Street removed, they then gambled big and lost big, took down the world economy! None of the commons sense regulations to keep the cowboy speculators in check have ever been applied since the 08 crash, they could do it again tomorrow. Wall Street has the credibility of the loan shark on the bad side of town..They are having a hard time flushing the chumps anymore and will have until some of the old Roosevelt regulations are broght back, at least the Voker Rule and Frank Dodd Act, that Wall Street if fighting tooth and nail.
The best investment for the average person right now is a lifestyle change.
Live within your means.
Get out of debt.
Take care of you and yours.
If everyone followed those four principles the majority of our economic/social woes in this country would evaporate in a generation. The sad thing is, it will take a true collapse for enough people to wake up to this reality.
I heard Jesse Ventura talking about the Rep/Dem problem as well.
Seems the smart folks are beginning to realize a lot of the responsibility for the demise of our financial well being is this corrupt Dem/Rep stranglehold on the participation of all Americans in our governing system. Outsourcing is just another example of a Union but only a different shade. Everyone who is complaining about the present well established Unions are forgeting that anytime you have barred entry and wage controls you are exhibiting Union activity. The Congress and Senate are the purist forms of Unions left in this Country. You don't play ball with either group you have no entry.
So let me get this straight??
Economy is in the dumper. Employment is in the dumper. Our debt is unpayable. Our dollar has devaluated once and may devaluate again? Inflation is on the rise. Foreign policy sucks and foreign leaders hate us? Housing situation is a mess. Am I forgetting anything??
And there are actually people that are so stupid, they want to re-elect Obama!!! Unbelievable!
Housing prices fall "Less than expected" is not something that should be causing a rally. Are we so desperate that just kind of bad numbers are seen as good.
When the consumer confidence numbers come out, look for a big hit to the market. In the present environment consumers are doing with less and less in an effort to try to build up some kind of a cushion against it being their turn to join the unemployed.
Oh yea- Europe hasn't gone away yet either and it is not going to any time soon!!
Bye Bye Barry
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