U.S. Stocks Rebound as Home Price Index Cools; Russia Dropped from G8

Nichole Harper
25 Mar, 2014
New York City

Stocks on Wall Street rebounded after falling for two days in a row. Geopolitical tensions dominated market worries after the industrialized nations gathering of eight nations kicked out Russia and warned of additional sanctions. U.S. home price index showed a smaller increase in January.

[R]11:20 AM New York – Stocks on Wall Street rebounded after falling for two days in a row. Geopolitical tensions dominated market worries after the industrialized nations gathering of eight nations kicked out Russia and warned of additional sanctions. U.S. home price index showed a smaller increase in January.[/R]

Stocks on Wall Street rebounded after falling for two days in a row and investors brushed aside the rising acrimonious tone between the NATO member nations and Russia.

Tensions rose between Japan and Western nations after Group of Eight nations expelled Russia.

Industrialized seven nations will not hold a planned meeting in Sochi and instead hold their own meeting in Brussels in June.

Industrial nations also threatened additional sanctions if Russia prepares to take over additional regions in Ukraine. Russia has demanded a federal government in Ukraine and more powers to regions and adoption of Russian as the second language.

S&P 500 index increased 0.4% or 8.00 to 1,865.44 and the Nasdaq Composite Index added 22.43 or 0.5% to 4,248.81.

Home prices across 20 largest metropolitan cities declined according to a controversial price index.

The Case-Shiler Index showed home prices declined 0.1% in January from the previous month and rose 0.8% after adjusting for season variations.

Prices increased 13.4% from a year ago month and prices have declined on a monthly basis for the third month in a row.

Prices rose in 12 of the 20 cities on a monthly basis and most analysts expect price increase pace to moderate after solid gains in the last three years.

After adjusting for season variations, prices increased 18.9% from a year ago in Los Angeles and gained 0.4% in San Diego.

European Stocks

In London trading, FTSE 100 index jumped 1.1% or 74.22 to 6,594.61 and in Frankfurt the DAX index climbed 1.8% or 166.63 to 9,355.40.

In Paris, CAC 40 index advanced 1.6% or 68.15 to 4,344.49.

U.S. Stocks in Review

Carnival Corp ((CCL)) declined 4.4% to $38.24 after the largest cruise operator narrowed and lowered full-year earnings outlook on lower ticket prices

Sonic Corp ((SNC)) soared 10% to $22.99 after the operator of fast food store chain operator reported adjusted second-quarter net profit of 7 cents a share, higher than at least 5 cents a share estimate.

Walgreen Company ((WAG)) increased 4% to $66.80 after the operator of drug retail chain said it plans to close 79 stores in the second-half of fiscal year.

The company also added the synergies from its Alliance Boots acquisition will increase to as much as $425 million.