We hope so ... :-)
Sent from BlackBerry® on 3 -----Original Message----- From: [email protected] Sender: [email protected] Date: Tue, 31 Aug 2010 11:37:21 To: <[email protected]> Reply-To: [email protected] Subject: [StockForex] Stocks Get Lift From Unexpected Improvement In Consumer Confidence Stocks Get Lift From Unexpected Improvement In Consumer Confidence Stocks have turned higher over the course of morning trading on Tuesday after seeing early weakness, as traders digest an unexpected improvement in August consumer confidence amid an otherwise mixed picture on the economic front. The major averages have moved off their highs for the session in recent trading but currently remain positive. The Dow is up 23.34 points or 0.2 percent at 10,033.07, the Nasdaq is up 1.45 points or 0.1 percent at 2,121.42 and the S&P 500 is up 2.17 points or 0.2 percent at 1,051.09. A short time ago, the Conference Board said its consumer confidence index rose to 53.5 in August from an upwardly revised 51.0 in July. The increase came as a surprise to economists, who had expected the index to edge down to a reading of 50.0 from the 50.4 originally reported for the previous month. Meanwhile, business activity in the Chicago-area saw a notable slowdown in the pace of growth in August, although activity still expanded for the eleventh consecutive month. The ISM - Chicago said its Chicago Business Barometer fell to 56.7 in August from 62.3 in July, with a reading above 50 indicating continued growth in business activity. Economists had been expecting the barometer to slip to a reading of 57.0. Also this morning, Standard & Poor's released a report showing that its reading on home prices in 20 major metropolitan areas increased by more than expected in June, but the data was likely skewed by the homebuyer tax credit. "While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead," said David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. Perhaps the most-watched report of the day will come in the middle of the afternoon, as the Federal Reserve releases the minutes of the August Federal Open Market Committee meeting at 2:00 p.m. ET. The minutes will be closely watched for the economic outlook and commentary from the nation's central bankers, as traders continue to look for any clues regarding the direction of the stalling economy. On the corporate front, Dollar General Corp. (DG) lifted its 2010 guidance, as the firm's second quarter profit surged to $0.41 per share, topping analyst estimates. Meanwhile, agricultural products giant Monsanto Co. (MON) said it expects ongoing earnings for fiscal year 2010 in a range of $2.40 to $2.45 per share, at the low end of its previous guidance range of $2.40 to $2.60 per share. Farm machine maker Deere & Co. (DE) also announced an agreement to sell its wind energy business to a wholly-owned subsidiary of Exelon Corp. (EXC) for $900 million. Sector NewsGold stocks are among the morning's strongest performers, with the NYSE Arca Gold Bugs Index posting a 2.1 percent gain. The advance has boosted the index to its best intraday level in two months. The upward move by gold stocks comes amid a notable increase by the price of the precious metal, with gold for December delivery up by $8.30 at $1,247.50 an ounce. Steel stocks are also seeing strong gains, with the NYSE Arca Steel Index up by 1.9 percent. Despite the move, the index remains rangebound. Airline, housing and railroad stocks are also seeing upside, while electronic storage stocks are seeing steep losses after bucking the downtrend in the previous session. The NYSE Arca Disk Drive Index is down by 1.8 percent, moving back towards last week's one-year closing low. Stocks Driven By Analyst CommentsDespite the rebound by the broader markets, V.F. Corp (VFC) is trading lower after being downgraded at Piper Jaffray to Neutral from Overweight. The stock is currently down by 1.8 percent after setting to a two-month intraday low. Rackspace (RAX) is also in the red following a downgrade at the Benchmark Company from Buy to Hold. Shares are currently down by 3.4 percent, moving further off of last Friday's seven-month closing high. On the other hand, Gap Inc (GPS) is on the upside after being upgraded by Wells Fargo to Outperform from Market Perform. The stock has gained 2.1 percent, moving further off the one-year closing low set last week. Other MarketsOverseas, stock markets in the Asia-Pacific region ended sharply lower Tuesday. Japan's benchmark Nikkei 225 Index slid by 3.6, while Hong Kong's Hang Seng Index saw a loss of 1 percent. Meanwhile, the major European markets have rebounded from early weakness and are little changed. The French CAC 40 Index, the German DAX Index and the U.K.'s FTSE 100 Index are all lingering near the flat line. In the bond markets, treasuries are seeing moderate strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.509 percent, posting a loss of 3.6 basis points.
