Stocks turn lower on global concerns

A Fed official also expresses doubts about QE3. But US home prices are up more than expected, and consumer confidence is at its highest in 7 months. Toys R Us plans to hire 45,000 holiday employees.

By TheStreet Staff Sep 25, 2012 9:19AM
Image: Wall Street sign, Corbis SuperStockUpdated at 1:11 p.m. ET


By Andrea Tse

 

Stocks lost all earlier gains Tuesday as global economic worries overshadowed better-than-expected readings on U.S. housing prices and consumer confidence.


The market pulled back also as Philadelphia Federal Reserve President Charles Plosser said the Fed's latest stimulus effort won't do much to boost economic growth or lower unemployment, CNBC reported.

 

The Dow Jones Industrial Average ($INDU) was down 13 at 13,546. The S&P 500 ($INX) was down 1 at 1,455. The Nasdaq Composite ($COMPX) was down 6 at 3,155.

 

The S&P/Case-Shiller 20-city home price index showed an annual return of 1.2% in July, beating the consensus of 1% and prior return of 0.6%.


The Conference Board reported that U.S. consumer confidence jumped to its highest level in seven months in September as Americans are more optimistic about the job market and income prospects, Reuters reported. The index rose to 70.3 from an upwardly revised 61.3 in August. It was the highest level since February and topped economists' expectations for 63.

In Europe, a meeting on the state of the euro economic and currency union is expected between European Central Bank President Mario Draghi and German Chancellor Angela Merkel.

 

In corporate news, Toys "R" Us said it will hire 45,000 holiday employees across the United States. The retailer, which hired about 40,000 seasonal workers last year, said it retained about 15% of its holiday workforce after the season ended, Reuters reported.

Hiring will begin this week and continue through December.


Caterpillar (CAT) on Monday said it's taking a measured view of the global economy over the next few years, issuing a 2015 forecast below estimates.

 

Yahoo (YHOO) CEO Marissa Mayer is expected to unveil her strategy for turning around the struggling Internet giant. Reports say Mayer will probably focus on search and ad technology.

 

Red Hat (RHT), the software maker, on Monday came in a penny short of Wall Street's profit expectations for its fiscal second quarter.

 

Paychex (PAYX), the payroll processor, on Monday posted fiscal-first-quarter earnings that narrowly topped analysts' estimates.

 

Jabil Circuit (JBL), a provider of electronics manufacturing services, is expected to report fiscal-fourth-quarter earnings of 58 cents a share in the August-ended quarter on revenue of $4.22 billion.

 

More from TheStreet
274Comments
Sep 25, 2012 9:46AM
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Lets not be silly.  With a continous flow of unregulated goods from China, Korea, and the SEATO countries any hope for traction by the American worker is zero.  The law of economics is no different than the law of gravity, death, and taxes.  There will be no improvement in the housing market, jobs market, or the American lifestyle.  Look at the structure of the Apple factory in China.  Massive dormatories where kids work 14 hour days.  We would need to do the same in order to compete. Is this what we all want? We are seeing a race to the bottom in how we care for our fellow Americans. This is an imperative and can not be escaped.  The majority of Americans have had the American dream stolen from them while they have been told they should be concerned about who sleeps with who, who makes  more money than them, and that they shouldn't believe in religion. The entire time they have been given false hope by spending their childrens childrens money. Get an effin clue America.
Sep 25, 2012 10:58AM
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Consumer confidence up! I'm confident I'm going to pay $210 to fill up my car 3 times this month, $30 a month more for health insurance, $30 more for utility rate increases, and $40 more for food. No wonder why consumer spending is up, this is great!!!
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Come on people China just injected 290 billion yuan into it's economy

 

so now we have

 

1) USA Bernanke throwing $80 billion a month into the stock market

2) Japan throwing 120 billion yen a month into the stock market

3) ECB throwing 300 billion euros a month into the stock market

4) China throwing 290 billion yuan into the stock market

 

It's a mad house of monies printing out there and the total collapse of the western and eastern economies are now assured.

 

For a while there it looked like the eastern economy was going to survive but they have decided to join the march madness. The march to the fiscal cliff and off.

 

Yep if the stock market doesn't move up 600 points today you will have lost the diff in monies as inflation is now going to be sky high folks.

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Top 12 Reasons to Vote Democrat

1. I voted Democrat because I love the fact that I can now marry whatever
I want. I've decided to marry my German Shepherd.

2. I voted Democrat because I believe oil companies' profits of 4% on a
gallon of gas are obscene, but the government taxing the same gallon of
gas at 15% isn't.

3. I voted Democrat because I believe the government will do a better job
of spending the money I earn than I would.

4. I voted Democrat because Freedom of Speech is fine as long as nobody
is offended by it.

5. I voted Democrat because I'm way too irresponsible to own a gun, and
I know that my local police are all I need to protect me from murderers
and thieves.

6. I voted Democrat because I believe that people who can't tell us if
it will rain on Friday can tell us that the polar ice caps will melt
away in ten years if I don't start driving a Prius.

7. I voted Democrat because I'm not concerned about millions of babies
being aborted so long as we keep all death row inmates alive.

8. I voted Democrat because I think illegal aliens have a right to free
health care, education, and Social Security benefits, and we should take
away the social security from those who paid into it.

9. I voted Democrat because I believe that businesses should not be
allowed to make profits for themselves. They need to break even and give
the rest away to the government for redistribution as the Democrats see fit.

10. I voted Democrat because I believe liberal judges need to rewrite the
Constitution every few days to suit some fringe kooks who would never
get their agendas past the voters.

11. I voted Democrat because I think that it's better to pay billions for
their oil to people who hate us, but not drill our own because it
might upset some endangered beetle, gopher or fish.

12. I voted Democrat because my head is so firmly planted up my azz,
it's unlikely that I'll ever have another point of view.
Sep 25, 2012 9:54AM
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Catepillar's news: they see something we'll all take notice of soon: China won't keep up their torrid pace and building left and right! the largest shopping mall in south China is 99% VACANT....they have over 60 million empty homes there...they've built tourist cities in which very few live..."The bloom is off of China's rose" - they have little reason to sell much machines to a country whose bubble is about to pop.
Sep 25, 2012 11:18AM
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Oh goodie...............now we're going to show 150,000 part-time, temporary, minimum wage, employees show up in the next payroll and jobs reports!  And, don't forget, they hope you'll spend all of that minimum wage money back in their store on Christmas gifts for your families.

 

Wally World is going to hire 52,000

Kohl's is hiring 50,000

Toys R Us is hiring 45,000

 

Any others?  How about target...........can't they hire 50,000 and try to make the next set of jobs reports look better?

 

Housing prices going up..........just means property taxes are going up!  Consumer confidence is up ..............really?

 

Sep 25, 2012 9:38AM
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( MADE IN CHINA= The destruction of the AMERICAN ECONOMY= Unemployment after they cook the numbers at 8.1= in reality is 21. percent and counting !   GOD BLESS AMERICA !
Sep 25, 2012 9:33AM
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sure, sure....housing "better than expected" but a CAT company saying "don't think so".......  CAT also dropped their bomb before closing Monday afternoon.  that is telling

 

>>>>>Caterpillar (), the heavy equipment company, said Monday it was taking a measured view of the global economy over the next few years, issuing a 2015 forecast below estimates.<<<<

Sep 25, 2012 10:06AM
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After the elction.........we will "then" see the reality of the economy and the stock market.............perhaps we will become aware of  the manipulation that in reality has been going on "prior to" the election. Sad....but it will then be too late for the Average american investor. Just what I believe......
Sep 25, 2012 11:20AM
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"My house has gone up around $100,000 in the last three months."

Unless you just did something like $100k worth of improvements, I'm callin a HUGE BS on this one!!!

Like anyone wants to live in Washington..... heading into the winter season...... NOT A CHANCE.
Sep 25, 2012 9:34AM
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"Barack Obama will tell the United Nations General Assembly Tuesday that the United States will "do what we must" to stop Iran from getting a nuclear weapon, according to excerpts from his planned speech."

Based on his track record so far, "do what we must" is code for cowering, begging, pleading, whining, weeping, apologizing, bowing and appeasing.

Who would win in a fight between Obama and FDR?  While Obama was kneeling to kiss his ring, FDR would pin him under his wheelchair.

Sep 25, 2012 11:12AM
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Definition: "Lower standard of living" : When prices rise and your income remains the same.
Sep 25, 2012 11:14AM
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It is time to get serious with oil traders who are risking America's security ... investigate them, then send them to jail,
Sep 25, 2012 11:13AM
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The president is in  N Y C today messing up traffic and people's lives.
he had a very important meetings with  BARBARA WALTERS  ,WHOOPI GOLDBERG, AND                   JOY BEHAR
screw  NETINYAHU
Sep 25, 2012 10:36AM
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FYI...........Home prices have not risen in our area........in fact the prices are still being reduced........I just wonder when I see these figures....where they come from?
Sep 25, 2012 10:32AM
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housing not better

 

media lies to make you think things are getting better

Sep 25, 2012 10:29AM
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Let's see, an annualized price increase of 1.2 percent which means that prices wnet up 0.1% for the month and the hope of a fickle consumer confidence report moves the market 49 points upward.  Wasn't there a false rise (600 points from July 4 to August 4, 2008) in the market in the summer of 2008 with money printing and last gasps of momentum investing, like now?  Does anyone realize that the spike in auto purchases means a bunch of five year loans that will take money out of the economy for the next few years?  And that home price increases will not lead to more consumer spending because most homes are already mortgaged to the max. Not being pessimisitic, just realistic
Sep 25, 2012 10:34AM
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 Toys "R" Us hires temporary workers for 2.5 months at minimum wage and this is great news?  The other part of this headline regarding home prices being "up" has little to do with an improving general economy.  This is reflective of rental speculation from the new wave of forclosures that is about to happen. 
Sep 25, 2012 10:44AM
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US housing showing great fundamentals, with all those people joining the workforce and recent college graduates getting good quality jobs there must be a huge demand for housing. Are you kidding me!!! People have to have a good paying job, good credit, and have a down payment to get a mortgage. Labor participation is down, more americans have negative reports and bankruptcies in their credit history, savings rate is at historic lows, personal income has not kept pace with inflation, and personal wealth is down for the average American. Any fool can see this is the new housing bubble created by the change in accounting practices by the banks that allow them to keep properties off the market in a shadow inventory in order to limit the supply of houses. In a normal market devoid of government intervention, banks would be forced to reconcile foreclosed properties based on a true market to market model. In stead accounting standards were changed to allow the banks to carry the foreclosed based on a false market to model format that doesn't reflect the true value of the property. Holding these properties off market manipulates the natural market forces of supply and demand and delays the needed correction to purge the system of the deteriorating properties.
Sep 25, 2012 12:16PM
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v l    All banks should be audited including the FED       here we are in agreement, and we do not have to be members of the same party to agree on commonsense principals
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