Existing Home Sales Rise 7.2%

123jump.com Staff
21 Aug, 2009
New York City

Existing home sale in July increased for the fourth month in a row. The steady gains in sales are supported by low interest rates and weak price environment across the country. Home builders gained after the release of the report.

[R]11:15 AM New York – Existing home sale in July increased for the fourth month in a row. The steady gains in sales are supported by low interest rates and weak price environment across the country.[/R]

Existing homes sales increased 7.2% in July to annual rate of 5.24 million from 4.89 million in June. The sales have increased for four consecutive months matching the increase in June 2004, according to the latest data from the National Association of Realtors.

Existing home sales had declined to 4.49 million annualized rate in January, the lowest level since record keeping started in 1999.

Chairman Ben S. Bernanke, in a speech delivered at the Annual Economic Symposium organized by the Federal Reserve Bank of Kansas City at Jackson Hole, Wyoming urged greater cooperation among international central bankers.

Bernanke urged the development of new regulatory financial framework to incorporate the new lessons learned and prevent the recurrence of the events of last two years.

Gainers & Losers

Of the stocks in S&P 500 index, 426 increased, 70 declined and 4 were unchanged.

Intuit Inc led the decliners in the S&P 500 index with a loss of 9.5% followed by losses in The Washington Post Company of 3.0%, in NIKE, Inc of 1.9%, in CIGNA Corporation of 1.7% and in Expedia, Inc of 1.3%.

Home builders gained after the latest report on existing home sales. Lennar Corp ((LEN)) increased 2.6% to $14.44, DR Horton ((DHI)) added 5% to $12.86 and Toll Brothers ((TOL)) increased 4.6% to $22.90.

Salesforce.com, Inc led gainers in the S&P 500 index with a rise of 13.4% followed by gains in The J. M. Smucker Company 6.3%, in American International Group, Inc of 5.5% and Limited Brands, Inc of 4.1%.

AnnTaylor Stores Corporation ((ANN)) fell 2.9% or 38 cents to $12.44 a women''s clothing retailer reported second quarter revenues fell 20.6% to $470.2 million from $592.3 million a year ago. Net loss in the quarter was $18.0 million or 32 cents per diluted share compared to net income of $29.3 million or 50 cents per share a year ago.

Salesforce.com, Inc ((CRM)) rose 15.7% or $7.32 to $53.50 after the seller of Internet-based customer management software said today is raising the full year revenue guidance it provided on May 21, 2009, with revenue now expected to be approximately $1.27 billion to approximately $1.28 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 145.21 or 1.40% to 10,238.20, Hang Seng index in Hong Kong decreased 129.84 or 0.64% to 20,199.02 and CSI 300 index in China higher 59.23 or 1.88% to 3,203.62. ASX 200 index in Australia decreased 86.90 or 1.99% to 4,290.60. The FTSE Bursa KL Composite index in Malaysia closed higher 0.36 or 0.03% to 1,163.79.

The Kospi Index in South Korea increased 4.59 or 0.29% to close at 1,580.98. SET index in Thailand closed higher 3.65 or 0.57% to 644.63 and JSE Index in Indonesia increased 5.26 or 0.23% to 2,333.90. The Sensex index in India increased 228.51 or 1.52% to 15,240.83.

Europe Markets Review

In London FTSE 100 Index traded higher 45.99 or 0.97% to 4,802.57, in Paris CAC 40 Index increased 55.02 or 1.57% to 3,560.34 and in Frankfurt DAX index traded higher 76.27 or 1.44% to 5,387.33. In Zurich trading SMI increased 72.77 or 1.21% to 6,104.82.