Wall Street in 5-day Rally, Home Prices Rise

Bikram Pandey
09 Aug, 2012
New York City

World markets were stable and stocks on Wall Street inched higher. A five-day rally in the S&P 500 index has lifted the index by 10%. Home prices advanced the most since 2006 in the second quarter. European markets added to 4-day gains.

[R]4:30 PM New York – World markets were stable and stocks on Wall Street inched higher. A five-day rally in the S&P 500 index has lifted the index by 10%. Home prices advanced the most since 2006 in the second quarter. European markets added to 4-day gains.[/R]

U.S. indexes struggled and trade deficit declined and weekly jobless claims fell. Stocks on Wall Street reacted to earnings and the latest housing industry data.

Single family median home price increased 7.3% to $181,500 in the second quarter from a year ago, according to real estate industry group. The quarterly price increase was the largest since the first quarter since 2006.

The euro declined for the third day in a row and China’s inflation fell and factory output decelerated more in July.

On the earnings front, Advance Auto Parts second quarter net declined 12% and Allscripts net plunged 49.6% but the company lifted annual outlook. Continental Resources second quarter net surged 69.6%. Dillard''s net jumped 76% and Kohl’s surged 19.7% as comparable sales fell 2.7%.

SunPower Corp dropped 10% after the solar panel company lowered its current year sales forecast. Education Management Corp dropped 19% after the second largest for-profit college chain posted a $1.2 billion in the fiscal fourth quarter.

The European indexes edged lower after the ECB cut economic growth outlook. Greek jobless rate rose to record levels in May and the UK deficit widened and Italian surplus rose in June.

Stocks in Tokyo gained for the fourth day and the Nikkei index extended gains to 5% in the week and brushed the 9,000 level. Bank of Japan left its asset purchase program intact and interest rates on near zero. Nikon plunged 8% and extended losses for the second day after the earnings release.

Stocks in Sydney trading rested for the first time in a week after the latest statistics from China suggested decelerating growth rates. News Corp swung to a loss and Telstra reported its first annual profit increase in three years. Tabcorp profit declined.

Commodities, Bonds and Currencies

The yield on 10-year bond traded higher to 1.69% and on 30-year bond edged higher to 2.78%.

The U.S. dollar inched higher to $1.229 to a euro and increased against the Japanese yen to 78.60 yen.

Immediate delivery futures of Texas crude oil increased 27 cents to $93.62 a barrel and Brent crude added $1.29 to $113.41, futures of natural gas decreased 1 cent to $2.92 per mbtu and gasoline price increased 3.2 cents to 301.29 cents a gallon.

In metals trading, copper increased 0.2 cents to $3.42 per pound, gold rose $3.60 to $1,619.60 per ounce and silver fell 0.5 cent to $28.07.