Stocks rise to start the week after the markets were closed yesterday in observance of Memorial Day holiday. The Dow, S&P, and Nasdaq all surged over 1% in early trading as investors considered data from several US economic reports. According to the S&P/Case-Shiller 20-city composite index, home prices were unchanged in March. Over the previous 12 months home prices have fallen 2.6% and remain near post-recession lows. A report from the Chicago Fed which measures manufacturing activity showed that the index rose 2.4% in April. Meanwhile, US consumer confidence fell for a 3rd straight month to 64.9 in May down from a revised 68.7 in April. May’s reading is the lowest since January and comes in well below economist estimates of a slight bump up to 70. European markets rose as news on a Greece exit from the Euro zone will have to wait until mid June and the upcoming election. Spanish stocks, however, slumped on concern over liquidity and a fragile banking sector as borrowing costs continued to rise. Asian stocks jumped higher as investors anticipate future Chinese stimulus to boost growth. Oil was up 1.14% to 91.72 while gold added 1.50% to 1583. The US dollar was mixed and the 10 yr. treasury yield traded slightly down at 1.73%. 30 mortgage rates traded at 3.80%. The volatility index traded slightly lower, down 0.60% to 21.63 at 7:37 am pacific.
Tuesday, May 29, 2012
Economic Journal - Tuesday, 5/29/2012
Stocks rise to start the week after the markets were closed yesterday in observance of Memorial Day holiday. The Dow, S&P, and Nasdaq all surged over 1% in early trading as investors considered data from several US economic reports. According to the S&P/Case-Shiller 20-city composite index, home prices were unchanged in March. Over the previous 12 months home prices have fallen 2.6% and remain near post-recession lows. A report from the Chicago Fed which measures manufacturing activity showed that the index rose 2.4% in April. Meanwhile, US consumer confidence fell for a 3rd straight month to 64.9 in May down from a revised 68.7 in April. May’s reading is the lowest since January and comes in well below economist estimates of a slight bump up to 70. European markets rose as news on a Greece exit from the Euro zone will have to wait until mid June and the upcoming election. Spanish stocks, however, slumped on concern over liquidity and a fragile banking sector as borrowing costs continued to rise. Asian stocks jumped higher as investors anticipate future Chinese stimulus to boost growth. Oil was up 1.14% to 91.72 while gold added 1.50% to 1583. The US dollar was mixed and the 10 yr. treasury yield traded slightly down at 1.73%. 30 mortgage rates traded at 3.80%. The volatility index traded slightly lower, down 0.60% to 21.63 at 7:37 am pacific.
