Indexes in the United States tried to make a comeback late in the session on Monday on a day when traders considered whether the plan to bail out Ireland was a indication that the sovereign debt crisis in Europe could spread. But shares ended the day mixed. 3; Following the lead from Europe, Wall Street indexes opened sharply lower, but shares regained some of that ground as the markets neared a close. The Dow Jones industrial average was down 24.97 points, or 0.22 percent, while the Standard & Poor´s 500-stock index fell 1.89 points or 0.16 percent. The technology heavy Nasdaq turned positive near the close, gaining 13.90 points or 0.55 percent. On Friday, the Dow Jones industrial average rose 0.2 percent, while the Standard & Poor´s 500 index rose 0.3 percent. The financial sector and the energy sector led the Wall Street´s decline
Encouraging reports about the prospects for an Irish financial rescue appeared to outweigh concerns about the prospect of slower growth in China. Stocks in the United States turned slightly higher on Friday afternoon, recovering from early losses as encouraging reports about the prospects for an Irish financial rescue appeared to outweigh concerns about the prospect of slower growth in China. With little new economic data and only a trickle of corporate results, events abroad were the focus of trading in the United States. 3; At the close, the Dow Jones industrial average was up 21.19 points, or 0.2 percent, at 11,202.42. It had been down more than 50 points early in the session. The Standard & Poor´s 500-stock index was up 2.97 points, or 0.2 percent, at 1,199.66 while the Nasdaq composite index rose 3.72 points, or 0.1 percent, at 2,518.12. 3; " in addition, generally upbeat economic data recently and the Federal Reserve´s $600 billion quantitative easing program have also been market drivers.
Even as the fight over foreclosures continues, the high tide of delinquency among homeowners has begun to recede. Households that are behind in their mortgage payments fell during the third quarter to 13.52 percent, from 14.42 percent in the second quarter, the Mortgage Bankers Association reported on Thursday. It was the lowest delinquency rate since the beginning of 2009, just as the financial crisis began hitting home. The new data come amid stepped-up scrutiny of foreclosures by state and federal authorities, prompted by revelations that the banks have been pursuing them in ways that could violate the law. Delinquencies during the summer months declined for two reasons. Bankers reduced the pool of the seriously delinquent by offering loan modifications to some and evicting others. Seriously delinquent mortgages - those that are three months overdue or more - fell during the third quarter to 8.70 percent of all loans, from 9.11 percent in the second quarter, the bankers´ group said. An economy that stopped deteriorating also had a positive effect. The percentage of borrowers that missed their first mortgage payment dropped in the third quarter, both from the second quarter and from the third quarter of 2009. (To read full article click on underlined)
...previously owned homes last month, up from a revised 35.6% in September and down from 40.9% in October 2009. The all-time high for foreclosure sales was 58.5% in February 2009. alejandro.lazo@latimes.com
Markets were little changed after four days of declines as talks on an Irish bailout continued. At the close, the Dow Jones industrial average, which briefly fell below 11,000 on Tuesday for the first time since mid-October on concerns over Europe, was down 15.47 points, 0.14 percent, at 11,008.03. The Standard & Poor´s 500-stock index rose 0.27 points, or 0.02 percent, at 1,178.60 while the Nasdaq composite index was up 6.17 points, or 0.25 percent, at 2,476.01
Pending sales of U.S. existing homes unexpectedly declined in September, a sign the housing market will take a long time to mend. The National Association of Realtors´ index of pending home resales dropped 1.8 percent after a revised 4.4 percent gain the prior month. Compared with the same month a year ago, pending sales were down 25 percent. Moratoriums on foreclosure and stricter lending are limiting progress, the group said. Bloomberg
Real estate experts were cautiously optimistic about the current and future state of the industry at today´s State of the Real Estate Industry forum during the 2010 REALTORS® Conference & Expo. Panelist Margaret Kelly, chief executive officer of RE/MAX, said today´s market shouldn´t be called the new normal because the old market was abnormal. "The spike up and down in the housing market wasn´t normal so we shouldn´t be measuring ourselves against it," she said. NAR
A slow, steady recovery is predicted for the housing market despite ongoing challenges, according to a residential market update today at the 2010 REALTORS® Conference & Expo. Lawrence Yun, National Association of Realtors® chief economist, expects continuing improvement of underlying fundamentals of the current market in coming years. NAR
Foreclosure Freeze: Your Questions AnsweredNearly 800 people attended REALTOR® Magazine´s October 28 webinar regarding recent foreclosure freezes by several national lenders. Since that session, media attention on the freeze has waned a bit. . . READ MORE>>
A crucial manufacturing index rose in October, but attention could be fleeting as traders turn to the midterm elections and the Fed meeting. Shares on Wall Street were off their highs at the close on Monday. Investors had been jittery ahead of the midterm elections, expected changes in monetary policy from the Federal Reserve and further insight into the nation´s jobs market. Shares closed mixed for the day. Indexes opened higher but lost those gains as the session wore on in what some analysts are calling one of the biggest weeks in some time for market-moving events. New upbeat reports on manufacturing, construction and corporate earnings helped to support the rise.
Monday´s economic data is expected to be quickly overshadowed by Tuesday´s elections and Wednesday´s Federal Reserve policy-makers´ meeting, after which the Fed is expected to announce a new round of bond purchases to help stimulate the American economy. In addition, investors will get a look at the latest readings on car sales and retail sales later this week. And then on Friday, the Labor Department releases the unemployment report for October, which will be closely watched for any improvements to the 9.6 percent unemployment rate and any increases in private payrolls.
The Dow Jones industrial average gained 6.13 points. The broader Standard & Poor´s 500-stock index added 1.12 points, while the Nasdaq composite index declined 2.57 points or 0.1 percent.
The U.S. Congress on Thursday voted to extend higher loan limits for government-backed mortgages, a move that should help keep borrowing costs low and support the shaky housing sector. At the height of the financial crisis in 2008, the government raised the ceiling on the size of loans Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) could buy. At the time, the private market for so-called jumbo loans had all but dried up. The legislation approved by the House of Representatives and Senate, which President Barack Obama is expected to sign into law, would keep in place until October 2011 the higher $729,750 ceiling for single-family home mortgages in high cost areas other than Hawaii and Alaska. The cap was scheduled to shrink to $625,500 at the start of 2011. The move to extend the higher limit will effectively keep interest rates super-low for a large swath of home buyers.
Rates on 30-year mortgages have matched the lowest level in decades, while rates on 15-year loans dropped to their lowest point in nearly 20 years. Yesterday, mortgage buyer Freddie Mac said the average rate for 30-year fixed loans fell to 4.32 percent, the lowest on records dating back to 1971. That´s down from 4.37 percent the previous week. The average rate on 15-year fixed loans fell to 3.75 percent, the lowest on records dating back to 1991. Rates have been at or near the lowest levels in decades since spring as investors poured money into the safety of Treasury bonds, lowering their yield. Associated Press
Traders are awaiting the Federal Reserve's meeting later in the week, expecting new measures to further stimulate the struggling economy. The Dow Jones industrial average jumped 146 points to its highest close since May. Buyers were also encouraged by an announcement from a group of economists declaring that the most recent recession ended in June 2009.
The national reading on industrial production overshadowed a disappointing regional report on September manufacturing activity in New York. 3; At the close, the Dow Jones industrial average rose 46.24 points, or 0.44 percent, to 10,572.73. The Standard & Poor´s 500-stock index rose 3.97 points, or 0.35 percent, to 1,125.07, and the technology heavy Nasdaq rose 11.55 or 0.5 percent, to 2,301.32.
...resale market, up from 34.2% in July and down from 41.7% a year ago. The all-time high was reached in February 2009, when foreclosures made up 56.7% of the market. alejandro.lazo@latimes.com
Indexes on Wall Street ended mixed on Tuesday despite reports on retail sales and business inventories restored some optimism about the American economy. The markets were kept in check by fresh concerns about Europe. German investor confidence fell sharply in September, and industrial production unexpectedly stagnated during July in the countries that use the euro. In other signs that investors remain cautious, gold climbed to another record, and Treasury prices rose, sending interest rates lower. 3;
Modest growth rates have been enough to reduce fears of the country falling back into recession. That has provided sufficient encouragement for traders to jump back into stocks. The Dow Jones industrial average has climbed eight of the last nine days and is off to its best September start since 1939.
At the close, the Dow Jones industrial average was down 17.64 points or 0.17 percent to 10,526.49. The Standard & Poor´s 500-stock index closed down less than a point to 1,121.10, while the Nasdaq rose 4.06 points, or 0.18 percent to 2,289.77. 3; In the bond market, Treasury prices rose, driving down interest rates. The yield on the 10-year Treasury note fell to 2.69 percent from 2.75 percent late Monday. And gold hit a new record earlier in the day, climbing as high as $1,273 an ounce, before falling back to $1,271 an ounce.
Retail sales rose 0.4 percent in August, their largest gain in five months, and business inventories rose 1 percent in July to their highest level since May 2009.
A report on Wednesday afternoon from the Federal Reserve could provide further insight into the pace of the American recovery.Shares on Wall Street followed European markets higher Wednesday as investors seemed to put aside some concerns about the European financial sector. The rise was a sharp contrast from Tuesday´s trading, when the Dow Jones industrial average, the Standard & Poor´s 500-stock index and the Nasdaq composite index all declined more than 1 percent. On Tuesday, traders were worried about strikes in France, the pending split up of the Anglo Irish Bank and reports that the 10 biggest lenders in Germany might need to raise 105 billion euros ($133 billion) because of new capital requirements. On Wednesday, a strong demand for Portuguese bonds seemed to ease some of those jitters. "The concerns that the bank stress tests were not as thorough and the banks were not as forthcoming with their exposure to sovereign debt is somewhat offset today by news that Portugal did not have any problem in their bond auction," said Hank Smith, chief investment officer of Haverford Investments. "Maybe yesterday´s sell-off was more about consolidating some of the gains from what was a three-day, five-and-a-half percent move from last week," Mr. Smith said.
On Wednesday, all three Wall Street stock indexes were higher, with the financial sector leading the market higher. At the close, the Dow Jones industrial average was up 46.32 points, or 0.45 percent, at 10.387.01. The Standard & Poor´s 500-stock index rose 7.03 points, or 0.64 percent, to 1,098.87, while the Nasdaq composite index was up 19.98 points, or 0.90 percent, to 2,228.87.
Stocks fell Thursday after early gains from a better-than-expected report on jobless claims. The Dow Jones industrial average closed below 10,000 for the first time since early July.
The Dow lost 74 points, having been up as much as 45 earlier. The market has been trading in a back-and-forth pattern in recent weeks as many investors remain unconvinced that the economic recovery will hold.
Stocks have been on a generally declining trend in August after charging ahead in July. A bevy of poor indicators on the economy, especially home sales, pierced an optimistic mood brought on by strong earnings reports the month before. The Dow has lost ground in five of the last six trading sessions, and has shed 430 points over that time.
The market enjoyed a brief reprieve from its malaise early Thursday from an encouraging sign on the job market. The Labor Department reported that first-time claims for jobless benefits fell last week after three consecutive weekly increases.
Now, it´s up to Ben S. Bernanke, the Federal Reserve chairman, to provide the next clues on the economy. He is delivering a speech early Friday that investors hope will shed light on how strong the nation´s economy really is and whether the Fed may take more steps to revive it.
The Dow fell 74.25 points, or 0.7 percent, to 9,985.81. The Dow had traded below 10,000 several times this week, but had not closed below that level since July 6.
Indexes on Wall Street wandered on Monday as traders looked ahead to later this week for some guidance on the direction of the economy. There were no economic reports on Monday like the kind that drove shares lower late last week, when new data on manufacturing and employment reinforced concerns that an economic recovery would be slow in coming. The Dow Jones industrial average and the broader Standard & Poor´s 500-stock index have ended lower the last two weeks. But later this week, reports on home sales, consumer sentiment and gross domestic product are expected to point to a sluggish recovery. Some analysts expected Friday´s revised number for second-quarter gross domestic product could report economic growth as low as 1 percent from the current estimate of 2.4 percent. 3; At the close, the Dow Jones industrial average was down 39.21 points, or 0.28 percent, to 10,174.41. The Standard & Poor´s 500-stock index lost 4.33 points or 0.4 percent to 1,067.36. The Nasdaq composite was down 20.13 points, or 0.92 percent, to 2,159.63. 3;
Indexes on Wall Street wandered on Monday as traders looked ahead to later this week for some guidance on the direction of the economy. There were no economic reports on Monday like the kind that drove shares lower late last week, when new data on manufacturing and employment reinforced concerns that an economic recovery would be slow in coming. The Dow Jones industrial average and the broader Standard & Poor´s 500-stock index have ended lower the last two weeks. But later this week, reports on home sales, consumer sentiment and gross domestic product are expected to point to a sluggish recovery. Some analysts expected Friday´s revised number for second-quarter gross domestic product could report economic growth as low as 1 percent from the current estimate of 2.4 percent. 3; At the close, the Dow Jones industrial average was down 39.21 points, or 0.28 percent, to 10,174.41. The Standard & Poor´s 500-stock index lost 4.33 points or 0.4 percent to 1,067.36. The Nasdaq composite was down 20.13 points, or 0.92 percent, to 2,159.63. 3;
Several reports, including retail sales data and the consumer price index, reminded investors of how sluggish the recovery is. Stocks fell for a fourth straight day Friday after new economic statistics reinforced a picture of a sluggish recovery in the United States. The economic reports, on business inventories, retail sales and the Consumer Price Index, were in much the same vein as those that Wall Street had been seeing throughout the week, including trade deficit figures that raised the likelihood that the estimate for second-quarter growth of 2.4 percent would be revised sharply lower. As earnings season winds down, traders are increasingly relying on the indicators for some hint of how the American economy is performing. "But if you take the totality of the last couple of weeks, it is providing more concern over the strength of the recovery," said Paul Ballew, a former Federal Reserve economist and a senior vice president for Nationwide Insurance. At the close, the Dow Jones industrial average, which went into the red for the year on Wednesday, was down 16.80 points, or 0.16 percent, at 10,303.15. The broader Standard & Poor´s 500-stock index was 4.36 points, or 0.4 percent lower, at 1,079.25 and the Nasdaq composite index was down 16.79 points, or 0.77 percent at 2,173.48. Interest rates were lower. 3;
Technology shares and weak jobs data sent Wall Street indexes down on Thursday, as traders took in more evidence that the global economy was slowing. Investors have been reacting to macroeconomic data throughout the week, analysts said. 3;Thursday´s warning of a slowdown came in the latest weekly job report and a reduced outlook by the technology bellwether, Cisco Systems. They were the latest in a string of disappointing reports, including a warning by Federal Reserve officials that the pace of recovery in the United States had slowed. "Conditions aren´t getting any better and fiscal stimulus is starting to run out," Doug Roberts, chief investment strategist for Channel Capital Research Institute, said. "People are starting to think about the third quarter." 3; At the close, the Dow was down 59.26 points or 0.57 percent. The broader Standard & Poor´s 500-stock index lost 5.91 points, or 0.54 percent, and the technology heavy Nasdaq dropped 18.36 points, or 0.83 percent.
3; "There is just not enough good news," Mr. Landesman said. "The only good news has been earnings. People have no confidence at all in the government and the Fed. There is fear we are going to head to a second recession." "There is nothing good to say about the employment situation in our country," he said. 3; Investors now expect interest rates to remain low for months, if not years. Government bond yields fell even more sharply in overseas markets as signs emerged of a slowdown in growth there. 3; The financial markets - stocks as well as bonds - have begun to adjust to the reality that growth is slowing not only in the United States but in many parts of the world. The reaction Wednesday was swift and painful, with stock markets around the world suffering their biggest setbacks since June. 3;
Investors now expect interest rates to remain low for months, if not years. Government bond yields fell even more sharply in overseas markets as signs emerged of a slowdown in growth there. Caught in the crosswinds was the dollar. It had fallen over the last two months on investors´ expectations that the rest of the world was growing more rapidly than the United States, but it reversed course on Wednesday, at least against the euro. After declining more than 10 percent against the yen in the last three months, the dollar dropped further to 84.72 yen on Wednesday, the lowest level since April 1995, before stabilizing Thursday. 3;Tom di Galoma, head of United States rates trading at Guggenheim Capital Markets, said the Fed´s move on Tuesday underscored how concerned policy makers were about the state of the economy - a concern ordinary Americans and, increasingly, Wall Street now share. "There is certainly a lot of angst about when this recovery is going to take shape," Mr. di Galoma said.
Fixed-rate mortgages continue their decline, while the 5-year adjustable rate also reaches a new low
Breaking News Alert
The New York Times
Wed, August 11, 2010 -- 4:05 PM ET
-----Dow Falls 2.5% Amid Concerns of a Slowdown;At the close, the Dow Jones industrial average was down 265.42 points, or 2.49 percent, at 10,378.83, while the broader Standard & Poor´s 500-stock index dropped 31.59 points, or 2.82 percent, to 1,089.47. The technology heavy Nasdaq fell 68.54 points, or 3 percent, to 2,208.63. Nasdaq Drops Nearly 3%
Shares on Wall Street retreated in the wake of the announcement by the Fed that it would buy government debt and as new trade figures suggested a slowdown in growth in the United States. The trade data came on the heels of economic reports from China that indicated that its economy was slowing.
Markets weighed reports that claims for unemployment benefits rose unexpectedly last week and that retailers reported only modest growth in sales in July. At the close, the Dow Jones industrial average was down 5.45 points, or 0.05 percent, at 10,674.98. The broader Standard & Poor´s 500-stock index lost 1.43 points, or 0.1 percent, to 1,125.81, and the technology heavy Nasdaq composite index was 10.51 points lower, or down 0.4 percent, at 2,293.06.
The stock market´s big rally stumbled Tuesday on disappointing earnings and economic reports that raised investors´ concerns about the strength of the recovery. The Dow Jones industrial average fell after rising 208 on Monday, when the economic numbers looked brighter. Investors have found it hard to reconcile the mixed reports of the past few months, and are quick to sell on any news that they believe points to a weaker economy. 3; The day´s economic reports added to the market´s sour mood. The Commerce Department said consumer spending and income were unchanged in June, another sign of a slower economy. The country´s savings rate rose, which means consumers would rather hold on to their money or pay down debt than spend. 3;Tuesday´s pullback was also to be expected after such a big gain on Monday, which came on renewed optimism about the economy. Trading has been erratic since the spring amid the conflicting signals about the recovery, and many traders are quick to cash in any profits.
"The economic data continues to be murky at best," said Ryan Detrick, senior technical strategist at Schaeffer´s Investment Research. At the close, the Dow Jones industrial average was down 38 points, or 0.36 percent, while the Standard & Poor´s 500-stock index fell 5.40 points, or 0.48 percent. The Nasdaq declined 11.84 points or 0.52 percent.
Investors were particularly fretful about the G.D.P. report because it comes at the end of a run of worse than expected economic data and a warning from the Fed. After digesting news of slower economic growth in the second quarter, traders on Wall Street saw a bit of the silver lining on Friday. Shares managed to close the day largely unchanged after opening lower on the latest reading on the nation´s economy. The report said that the nation´s economy grew at an annual pace of 2.4 percent in the second quarter. Many analysts had expected 2.5 percent in the April-through-June quarter, though some had started to lower their expectations as the week progressed. The government also revised first-quarter growth to 3.7 percent from 2.7 percent. Traders initially took a dim view of the report, with the Dow Jones industrial average briefly falling more than 100 points. 3;At the close, the Dow Jones industrial average was down 1.22 points. The broader Standard and Poor´s 500-stock index was flat, and the Nasdaq was 3.01 points or 0.13 percent higher .
3;"Capital spending is doing well," Mr. Sinai said, "and we have a very healthy business sector but the big issue is the consumer and whether consumer spending will hold up," That in turn, he said, depends on jobs and income. "This is a two faced recovery," Mr. Kelly said. "The face of business is brightening up a lot. The face of the consumer is very gloomy." Friday´s reports come on the heels of two other disappointing reports. Earlier this week, the Conference Board said that its index of consumer confidence dropped to 50.4 points in July from a revised 54.3 in June as Americans worried about a stagnant job market. And the government reported that durable goods orders declined 1 percent in June, the second consecutive monthly decrease. The Federal Reserve, in its regional report on Wednesday, also noted that the economy was beginning to lose its momentum. 3;
Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), with the 30-year and 15-year fixed-rate mortgages reaching record lows for this survey. (The 30-year fixed-rate survey began in 1971, and the 15-year began in 1991.) Freddie Mac Press Release
Mortgage rates for U.S. homes set a record low for the sixth straight week, potentially freeing up money for consumers to spend elsewhere. Investors seeking the relative safety of bonds backed by government-controlled home finance companies Fannie Mae and Freddie Mac drove the average rate for a 30-year fixed mortgage down to 4.54 percent in the week ended today from 4.56 percent last week, McLean, Virginia-based Freddie Mac said. The average 15-year rate was 4 percent, also a record in the data going back to 1971, the company said in a statement. Bloomberg
Shares on Wall Street picked up some ground on Monday, helped by a revised outlook from FedEx and a stronger-than-expected report on new home sales. All three markets turned positive for the year, rising At the close, the three Wall Street indexes were about 1 percent higher. The Dow Jones industrial average was up 101.80 points or 0.97 percent. The broader Standard & Poor´s 500-stock index gained 12.34 points, or 1.12 percent, and the technology heavy Nasdaq increased 26.96 points or 1.19 percent.
Bond prices dropped. The yield on the 10-year note rose to 3.03 percent from 3.00 percent late Friday.
Before the markets opened in New York, the shipping company FedEx raised its earnings outlook for its first quarter and the year as the economy recovers and business improves. FedEx said it expected to earn $1.05 to $1.25 a share for the quarter ending Aug. 31, up from earlier guidance of 85 cents to $1.05 a share. For the year, FedEx expects earnings of $4.60 to $5.20 per diluted share, up from $4.40 to $5.00 a year ago. 3;
The latest report on housing, this one from the Department of Commerce, showed that sales of new homes rose nearly 24 percent in June from a month earlier to a seasonally adjusted annual sales pace of 330,000. The overall pace of the sales, however, was the second slowest on record. Stuart G. Hoffman, chief economist with PNC Financial services group, said June´s figures show that the housing market was weak but was rebounding after a revised 36.7 percent decline in May. "I would say the housing market has really been stable through this tax-credit period and these weak numbers in May and June are not a sign the housing market is going into a double-dip," Mr. Hoffman said. He said the low figures in May were the result of unusually high sales in April, prompted by the expiration of the federal housing credit on April 30. Shares of homeowners rose on the housing news. The Pulte Group rose 3.8 percent; D.R. Horton 2.3 percent; and the Lennar Corporation 1.99 percent. 3;Markets were also higher in Europe, where investors got their first opportunity to react to the results of the stress tests of European banks. The banking sector in Europe was also higher.
Wall Street markets closed almost 1 percent higher on Friday, rising after the widely anticipated results showed that only seven of the 91 institutions that were analyzed were found to have failed. The total capital-raising requirement was only 3.5 billion euros ($4.52 billion). The seven banks that failed, five in Spain and one each in Germany and Greece, were already considered weak by analysts. 3;
Shares on Wall Street were lower after the Federal Reserve said the economic recovery is slowing in some parts of the country. 3; Near the close, the Dow Jones industrial average fell 39.05 points, or 0.37 percent. The Standard & Poor´s 500-stock index fell 7.82 points, or 0.70 percent, while the Nasdaq fell 23.69 points, or 1 percent.
By CHRISTINE HAUSER 4:36 PM ET Shares turned around in afternoon trading, though one analyst characterized the markets as searching for direction. At the close, the Dow Jones industrial average was up 75.53 points, or 0.74 percent, to 10,229.96. The broader Standard & Poor´s 500-stock index rose 1.14 percent, or 12.23 points, to 1,083.48, and the technology heavy Nasdaq was up 1.1 percent, or 24.26 points, to 2,222.49.
"I think in general we are seeing corporate profits are not as strong as we originally had anticipated and there doesn´t seem to be momentum from the first quarter," said William Fitzpatrick, equities analyst for Optique Capital Management.
"There is still a recovery going on and it´s a muted economic recovery," Mr. Fitzpatrick said.
Shares on Wall Street closed higher Monday in a cautious market looking for guidance on the pace of the recovery from various earnings outlooks. In the second week of corporate earnings season, investors are mining the reports for hints about the direction of the economy and for some sign about how banks will weather the changes contained in the overhaul of financial regulations. Housing data released Monday confirmed a softening of the housing market, but some said the market had already discounted that report and was focusing on earnings. At the close, the Dow Jones industrial average was up 56.53 points, or 0.56 percent, at 10,154.36. The broader Standard & Poor´s 500-stock index rose 6.37 points, or 0.6 percent, at 1,071.25 and the Nasdaq rose 19.18 points, or 0.8 percent, at 2,198. 23
By E. Scott Reckard, Los Angeles Times ...homes slipped 2.2% last month. Both drops were blamed on the expiration of a federal tax subsidy for home buyers, but the sales data also came in significantly lower than expected. scott.reckard@latimes.com
Stocks Close Mostly Higher After Gold Price Rises
By THE ASSOCIATED PRESS
Stocks closed mostly higher Friday after a rise in gold lifted shares of minerals companies. The Dow Jones industrial average rose in afternoon trading after posting its first three-day gain since April. Broader indexes edged higher. The price of gold settled at a record for a second straight day. That lifted shares of mining companies like Barrick Gold and Newmont Mining. The stocks rose about 3 percent. Corporate news brought out some buyers. CVS Caremark and Walgreen ended a contract dispute that threatened to hurt profits. Without the deal, thousands of Walgreen customers could have had to find somewhere else to fill prescription drugs. The companies did not release details of the agreement. CVS shares rose 3 percent, while Walgreen climbed 3.5 percent. Friday was a quarterly "quadruple witching" day, or the simultaneous expiration of four kinds of options and futures contracts. That brought heavy trading volume and price swings. The week that follows the June expiration is often a losing one for investors. The Dow has posted a loss during that week for the past 11 years, according to the Stock Trader´s Almanac. At the close, the Dow was up 16.47 points, or 0.2 percent, at 10,450.64. The broader Standard & Poor´s 500-stock index was up 1.47 points, or 0.1 percent, at 1,117.51, and the Nasdaq composite index was up 2.64 points, or 0.1 percent, at 2,309.80.
The Dow finished with its second straight weekly gain. Before that, the Dow had been down for three weeks. Investors have been trying to determine whether the stock market´s "correction" is over. A correction is generally considered a drop of 10-20 percent from a recent peak. The Dow is up 6.3 percent from its lowest close of the year on June 7 but it´s still down 6.9 percent from its 2010 high on April 26. "I don´t know that we´re totally through the correction," said Stu Schweitzer, global markets strategist at J.P. Morgan´s Private Bank in New York. "I do expect markets to remain quite volatile all through the rest of this year but I still expect that we´re going to end the year higher." Bond prices slipped, pushing interest rates higher. The yield on the benchmark 10-year Treasury note rose to 3.22 percent from 3.20 percent late Thursday. The dollar was mixed against other major currencies, while the euro fell to $1.2363. 3;
The coming week brings readings on home sales and consumer sentiment. The Federal Reserve also will meet on interest rates.
Gold settled at $1,258.30 an ounce, a gain of $9.60. Barrick Gold rose $1.47, or 3.3 percent, to $46.29, and Newmont Mining climbed $1.90, or 3.2 percent, to $61.58.
CVS rose 95 cents, or 3 percent, to $32.79, while Walgreen advanced $1.03, or 3.5 percent, to $30.30.
American indexes also took their cues from rising European markets. The markets found their legs on Tuesday and raced ahead in afternoon trading. Shares rose sharply as investors weighed the latest economic indicators. In the absence of any single compelling headline to provide enduring direction, investors brought a range of other factors to bear - upbeat reports from manufacturers, new indicators on trade and home building, the rise in the euro, and the financial overhaul legislation. In New York, the rally was broad-based, led by technology and industrial shares. Wall Street took its cue from Europe and traded higher across a broad range of sectors. European markets were also higher, and the euro climbed back over $1.23. At the close, the Dow Jones industrial average was up 2.1 percent, or 213.88 points, at 10,404.77. The Standard & Poor´s index was up 2.35 percent or 25.60 points, to 1,115.23, and the Nasdaq was up 2.76 percent or 61.92 points, to 2,305.88.
The surge on Wall Street exchanges slowed Monday afternoon after the Moody´s rating agency cut Greece´s credit rating to junk. Moody´s, in a statement, said its decision was based on the strengths and risks of the financial rescue package developed by countries in the euro zone and the International Monetary Fund. The outlook was stable, Moody´s said. Euro-zone countries and the I.M.F. earlier this year agreed to a bailout package of 750 billion euros, or $950 billion, to help European countries deal with the sovereign debt crisis. While the package "eliminates any near-term risk of a liquidity-driven default," a senior analyst at Moody´s, Sarah Carlson, said, "the macroeconomic and implementation risks associated with the program are substantial." Greece´s rating was cut four notches to Ba1, one notch into junk status. At the close, the Dow Jones industrial average was 20.18 points, or 0.20 percent, lower, at 10,190.89. The Dow had been up almost 100 points at one time on Monday. The broader Standard & Poor´s 500-stock index was down 0.18 percent, or 1.97 points, at 1,089.63, and the technology-heavy Nasdaq composite index rose 0.36 points, to 2,243.96. Moody´s made its announcement after the markets closed in Europe.
The euro continued to weaken Thursday amid persistent concerns over Europe´s sovereign debt crisis and the rescue package itself. And indexes on Wall Street ended down more than 1 percent. "We are testing the lows from last week´s panic," Win Thin, a senior currency strategist for Brown Brothers Harriman, said of the euro. "Confidence in the euro has definitely dropped. There is nothing that makes you want to go the other way." 3;In the equity markets, shares on Wall Street drifted for most the day before turning lower near the close. Analysts said several factors were influencing the markets, including new jobless numbers, which contributed to the uncertainty surrounding direction. At the close, the Dow Jones industrial average was down 113.96 points or 1.05 percent, to 10,782.95, while the Standard & Poor´s 500-stock index dropped 1.2 percent or 14.23 points to 1,157.44. The Nasdaq declined 1.26 percent, or 30.66 points, to 2,394.36.
The Labor Department said that first-time jobless filings last week fell by 4,000 to a seasonally adjusted 444,000. While that marked the fourth week of improving numbers, it fell shy of expectations. In addition, the weekly numbers have not declined enough to signal sustainable job growth. Dan Greenhaus, chief economic strategist for Miller Tabak & Company, and other analysts cited other factors, like residual concerns about the European sovereign debt crisis, pressures on Asian markets and reports that the New York attorney general was investigating eight banks to determine whether they provided misleading information to rating agencies.
"I don´t think you need a catalyst," said Scott Wren, senior equity strategist for Wells Fargo Advisors. "Just the uncertainty alone" from the European and financial markets "is enough to push the market around on really no news at all." "Most people are expecting a correction from a technical point of view before we can get a sustained upward trend," Doreen Mogavero, the president of Mogavero, Lee & Company, said. And the prospect of widening investigations into banks could slow the markets. "You can´t have a market rally without the financials," said Daniel H. McMahon, head of equity trading at Raymond James & Associates. "That will weigh over the market until it is no longer an issue." Bank shares traded heavily soon after the opening. Citigroup was down 1.5 percent and Bank of America was down 0.12 percent. 3;
After starting the session solidly higher, U.S. stocks dipped after a Commerce Department report on factory orders fell short of expectations. In late trading, the Dow Jones industrial average was down 8.62 points, or 0.08 percent, at 10,240.92. The Standard & Poor´s 500-stock index was up 2.26 points, or 0.21 percent, at 1,100.64. And the Nasdaq composite index was up 16.89 points, or 0.74 percent, at 2,297.96.
If the American markets ever needed a reminder of how intertwined they are with European economies, they got it on Friday.
For most of the day, American indexes had been in holiday mode, trading quietly lower at the start of a three-day weekend. But right after lunch, the Fitch ratings firm announced that it had downgraded Spain´s credit rating by one notch, sending indexes on a swift decline of more than 1 percent.
"Nothing like waking us up on a holiday Friday," said Win Thin, a senior currency strategist for Brown Brothers Harriman & Company.
"That really rocked the market a little bit," said Yu-Dee Chang at ACE Investment Strategists.
At the close, the Dow Jones industrial average was down 122.36 points, or 1.19 percent, at 10,136.63. The broader Standard & Poor´s 500-stock index was down 1.24 percent or 13.65 points, to 1,089.41, and the technology heavy Nasdaq was down 0.91 percent, or 20.64 points, to 2,257.04.
Friday´s drop ended what has been a miserable month for the equity markets; all three major indexes ended the month down about 8 percent.
"This should serve as a reminder that while the news stream out of Europe was generally quiet this week, the potential and risk is for more bad news to emerge from time to time and roil markets," Mr. Thin wrote in a research note. "Spain is coming increasingly into the cross hairs due to negative developments in its banking system, and the lines of contagion from Greece are growing."
Breaking News Alert
The New York Times
Tue, May 25, 2010 -- 4:14 PM ET
Stocks Erase Losses Late in the Day, Finishing Nearly Unchanged
Shares on Wall Street recouped almost all of their earlier losses to end the day flat. At one point, indexes were down more than 2 percent.
At the close, the Dow Jones industrial average was down 22.82 points, or 0.23 percent; the Standard & Poor's 500-stock index actually turned positive, gaining less than a point, while the Nasdaq declined 2.6 points or 0.12 percent.
Attached are three real estate articles from today´s Wall Street Journal in addition to the following financial report and three additional articles. It a lot of reading, but chances are good that you clients are reading them and you should know what is being said.
California Extends Home Buyer Tax Credit
California has re-established and extended a $10,000 home buyer tax credit, allocating $200 million to the credit for homes purchased between May 1 and Dec. 31, 2010 and between Dec. 31 and Aug. 1, 2011.
Steve Goddard, president of the California Association of REALTORS®, said the tax credit will help create incentive for first-time home buyers to purchase abandoned and foreclosed homes. "It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities," Goddard said.
The credit will be split between first-time buyers and buyers who have lived in their home for at least two years.
"The tax credit will help push prospective buyers off the fence, clear out inventory, and jump-start the homebuilding industry, which will help create jobs and reinvigorate the state's economy," said Liz Snow, CEO and president of the California Building Industry Association, in a statement.
Analysts said the quick surrender of the early advances is a sign that stocks have risen too fast.
At the close, the Dow Jones industrial average rose 9.15 points to 10,850.36. The Standard & Poor´s 500-stock index rose less than a point to 1,166.59, while the Nasdaq declined 2.28 points or 0.1 percent to 2,395.13.
By DAVID STREITFELD 11:30 AM ETJoe Raedle/Getty Images
Bank of America negotiators work with clients as they try to restructure their mortgage loans during a "Save the Dream" tour stop by the Neighborhood Assistance Corporation of America in Palm Beach, Fla. on Feb. 25.
·MARCH 26, 2010Debt Fears Send Rates Up
Unease at Deficit Hurts Demand for Treasurys; Mortgage Costs on the Rise
BY TOM LAURICELLA Wall Street Journal
A sudden drop-off in investor demand for U.S. Treasury notes is raising questions about whether interest rates will finally begin a march higher-a climb that would jack up the government´s borrowing costs and spell trouble for the fragile housing market.
For months, investors have focused their attention on the debt crisis in Europe, but there are signs the spotlight is turning to the ability of the U.S. to finance its own budget deficit.
This week, some investors turned up their noses at three big U.S. Treasury offerings. Demand was weak for a $44 billion 2-year-note auction on Tuesday, a $42 ...
Homeowners who believe they've been left out of the so-called green movement have every reason to feel that way.
Markets at Highs Not Seen Since 2008click on underlined to read full article By JAVIER C. HERNANDEZ The stock market continued its advance of the past month after the Fed said it would keep interest rates low to revive the economy. Dow Jones industrial average gained 0.45 percent, or 47.69 points at 10,733.67, breaking above its recent January highs and extending a winning streak to seven days.