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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"a home is only worth what it cost to purchase the lot and build it"
This is incorrect. Like any good or service, its value is what a purchaser is willing to pay for it.
Housing prices...May run the same type of gambit, that they have run in Japan; Although being honest I have paid little attention to what housing market has done or not done there.
They have teetered for almost 20 years of languish, and the recent events of quakes and tsunami have not made their positions stronger...Although they are a very resilient race of people.
I really don't see any "bubbles" in housing in the near future...The game has changed, maybe not forever? But mortages and loans are not going to be like shopping at the five and dime anymore.
I would bet common sense and older style(years ago) mortgage lending will prevail, and kinda think banks and institutions have been put on notice...That they will just go down in flames the next time, we and the Government(taxpayers) cannot continually afford others, making poor choices.
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!!!
Unless you are a real estate professional, you buy a home to live in it. Usually a person buys a home when they need it and aren't timing the market.
Whenever you sell it, you'll have to take the price the market dictates. Right now in most areas of tthe country it's a buyer's market. Taking a loss isn't so bad since your new home will be less too.
What you should be taking advantage of are opportunities in the market. Although the best prices have receeded with the market's rise, there are still good values out there.
But let's face it. You clowns are all wage slaves and don't have much to begin with except a crummy old house, a flea bitten mutt, and a fat horrible wife!
Obami El Salami is a dark cloud over America. Only Mitt can bring a ray of sunshine to your miserable existence!
Go Mitt go. Obami blows.
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?
i accidently bought a home at the peak on december 4th 1989. it took 10+ years from the recession then to return the home to my purchase price in 2000. i do not believe this recession will return anywhere as quickly.
>>>>I think eventually (in 10 years), some cities will get back to their bubble prices in housing - but not all cities. Property is a real, tangible investment.... seems a bit more sure than investing in stocks these days.<<<<
Salt......Why should msn provide a sounding board for us political hacks on an article about finances, investing and world markets...Along with stock or equity reports...
There are plenty of sites to spew most of the trash that's written on here...
There is little discussion by the majority of us, on investing ideas and possibilities of making your life better, by making better informed choices...
And then some on here wonder why their position in life is in the shidter...They have made poor choices and want to wallow in the self pity somewhere....And they picked this place.
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 !
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.
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[BRIEFING.COM] The Russell 2000 crosssed the 1,000 level for the first time ever today and the S&P 500 established a new all-time, intraday high. Those were some of the more memorable highlights of what was an otherwise nondescript day of trading.
By and large, there just wasn't a lot of conviction on the part of either buyers or sellers. The major indices spent time on either side of the unchanged line, but never put a whole lot of distance between themselves and ... More
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