Tuesday, June 25, 2013

Economic Journal - Tuesday, 6/25/2013

(As of 7:24 am PST)
 
Solid economic data has reversed the decline in stock markets.  The durable goods orders index was up 3.6%, higher than estimates.  It was led by aircraft orders, which tends to make that index very volatile.  Buried in the data was the fact that business orders jumped by over 1%, a sign of a continuing steady, though muted recovery.  Another report showed that new home sales jumped by the largest amount since 2008, and the Case-Schiller Price Index showed the largest monthly gain in prices ever recorded at 2.5%.  Consumer confidence soared above estimates adding to investor confidence.  Gold and oil are near even for the day and interest rates appear to be stabilizing as well.  International markets stabilized overnight.  It looks like a day of solid recovery, but worries about the future of Federal economic stimulus will put a ceiling on gains.

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