Business

Morning Market Roundup: Euro Bank Call to Action, Home Prices Up, Consumer Confidence Up?

Here’s what’s important in the business world this morning:

Consumer Confidence: A private group says U.S. consumer confidence jumped this month to the highest level since February, bolstered by a brighter hiring outlook.

The Conference Board says its Consumer Confidence Index rose to 70.3. That’s up from 61.3 in August, which was revised higher. And it’s the highest reading since February, when the economy added 259,000 jobs. The reading is still below 90, a level that indicates a healthy economy. Since the beginning of the year, the index has fluctuated sharply.

The survey was conducted from Sept. 1 through Sept. 13. It showed consumers were more optimistic about the current availability of jobs and their outlook over the next six months.

Home Prices: Home prices kept rising in July across the United States, buoyed by greater sales and fewer foreclosures.

National home prices increased 1.2 percent in July, compared to the same month last year, according to the Standard & Poor’s/Case Shiller index released Tuesday. That’s the second straight year-over-year gain after two years without one.

The report also says prices rose in July from June in all 20 cities tracked by the index. That’s the third straight month in which prices rose in every city.

Steady price increases and record-low mortgage rates are helping drive a housing recovery.

In the 12 months ending in July, prices have risen in 16 of 20 cities. In Phoenix, one of the cities hardest hit by the housing bust, prices are up 16.6 percent in that stretch. Prices in Minneapolis and Detroit have risen more than 6 percent.

Home prices are still 30 percent below their peak in June 2006, according to Case-Shiller. That was the height of the housing boom.

EU: The head of the European Central Bank is insisting that measures the bank is taking to alleviate the debt crisis can only “build a bridge” to a better future and it’s up to governments to take decisive action.

Speaking to an industry conference in Berlin, Mario Draghi on Tuesday underlined the bank’s commitment to its mandate of fighting inflation.

The ECB recently unveiled a plan to buy unlimited amounts of government bonds to help lower borrowing costs for struggling countries – a drive that met with skepticism in Germany and is opposed by the country’s central bank chief.

Draghi says the ECB acted to address “unfounded fears about the euro area that were affecting our ability to ensure price stability.”

Stocks: Encouraging reports on the housing market and consumer confidence gave the stock market a nudge in early Tuesday trading.

The closely watched Standard & Poor’s/Case Shiller index of national house prices increased 1.2 percent in July compared with the same month in 2011. Prices rose from June in all 20 major cities tracked by the report. It’s the third straight month that prices rose in every city.

A half-hour after the opening bell, the Dow Jones industrial average was up 52 points to 13,610. Home Depot led the 30 stocks in the Dow, gaining 1 percent. The Standard & Poor’s 500 index added five points to 1,462.

In other trading, the Nasdaq composite index added 10 points to 3,170. Google’s stock touched an all-time high in early trading, clearing $758.

The Associated Press contributed to this report.

Benghazi, IRS, AP...What's next? Only TheBlaze TV offers the truth from Glenn Beck, Andrew Wilkow, and Real News from TheBlaze. Get instant access and a free trial here.

Comments (4)

  • MONICNE
    Posted on September 25, 2012 at 12:44pm

    As long as I continue to make a good profit, I am going to ride this market. I have earned back all my 2008 losses and although still somewhat behind where I might have been without the “Faux-Cession” the stock side of my portfolio is back in town.

    Report this comment

    MONICNE  
    • Cavallo
      Posted on September 25, 2012 at 1:02pm

      Until the collapse. The math is out there. Sooner or later the system must pay the piper. I have yet to see anyone explain how this all doesn’t fall on our heads. The growth needed to get us out of this mess without a collapse would require a liberty in the system that Washington will never grant. So.. it’s just a matter of “when” not “if”.

      Report this comment

      Cavallo  
    • woodyee
      Posted on September 25, 2012 at 1:42pm

      I agree with Cavallo. The market may LOOK good, but ALL of it’s support systems just aren’t there. To the contrary, ALL the signs of this false-market imploding are there (QE3, EuroQE2, Japanese QE*), gold pushing$2k an ounce with a bulldozer, gas up over 100% since Gaybama took office, double-dipping into corn for ethanol, unemployment at steady unsustainable rates, welfare up, food stamps up, rioting in all kinds of countries (I could go on) and a Fed Chair helping the current Gayministration** kick the pending implosion into Romney’s presidency.

      * – Japan is going on near 20years of artificially propping up it’s economy
      ** – in deference to Gaybama.

      Report this comment

      woodyee  
    • JRook
      Posted on September 25, 2012 at 1:47pm

      Come on beckett work harder at finding bad news on the economy. we know you routing against it.

      Report this comment

      JRook  

Sign In To Post Comments! Sign In