Stocks to wrap up 2009 on high note

NEW YORK (Reuters) - Wall Street is likely to make a strong showing in the final week of 2009 as the bulls gear up to toast the first annual advance for U.S. stocks in two years on hopes of more economic stability in 2010.

The U.S. stock market's resiliency since the March bottom has put investors in the mood to celebrate. The trading week will be cut short by the New Year's Day holiday on Friday, when U.S. financial markets will be closed.
The S&P 500 is poised for what could possibly be its best year since 2003 -- in sharp contrast to a year ago, when stocks plummeted in the fallout from the mortgage crisis and panic rocked investors as 2009 got under way.
Even though no "all clear" has been sounded for the U.S. economy, equity strategists said stocks were poised to add to recent gains this week and build a base for a solid start to 2010 as optimism about the recovery grows.
There is an expectation now that economic indicators will keep showing improvements in key areas like housing and the labor market.
"There's an upward bias," said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio. "Economic numbers have been good. It's been an ideal situation for equities as there aren't that many other alternatives. I think the smarter money is going into equities."
The benchmark Standard & Poor's 500 .SPX started out November in a tight trading range. But by Christmas Eve, when stock trading ended early for the holiday, the S&P 500 had climbed to a 14-month closing high as investors bet the recovery would be strong enough to justify loftier stock valuations. U.S. markets were closed on Friday for Christmas.
DOUBLE-DIGIT GAINS FOR 2009
The S&P 500 is up 66.5 percent from a 12-year closing low set on March 9. Its trading levels now imply a forward price/earnings ratio of 15.5, according to Thomson Reuters data.
And oh, what a difference a year makes. The S&P 500 ended 2008 down 38.5 percent.
But for 2009, the S&P 500 is up 24.7 percent -- a gain that puts the broad market index on track for what could be its best year since 2003. An even stronger advance this week could put the S&P 500 in position for its best year since 1998.
For 2009, the Dow is up 19.9 percent and the Nasdaq is up 45 percent.
"The market is telling us that the economy is a lot stronger than people are giving it credit" for, said Cleveland Rueckert, a market analyst at Birinyi Associates in Stamford, Connecticut.
Although there might be some profit-taking in the final days of the year, the stock market's underlying tone should still be positive, Reuckert added.
"In our view, the market is going to go higher."
The ritual of window dressing should also support the stock market in the coming week, according to analysts. That strategy involves selling stocks with large losses and buying winners near the end of the year or quarter to improve a portfolio's performance.
"The fact that it's year-end is going to cause a fair amount of volatility on probably relatively light volume," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles. "I would expect the bias would be to the upside toward the end of the week."
Volatility may be enhanced in a holiday-shortened week, when the U.S. stock market will be open for only four days.
Volume may be exceptionally light, with many market participants taking time off through New Year's Day.
CONSUMER CONFIDENCE ON TAP
Economic and corporate calendars are light this week. But there will be a few items worth keeping an eye on, including the U.S. Treasury's auctions of $118 billion of two-year, five-year and seven-year notes.
Investors will watch for how much demand there is for U.S. government debt as efforts to revive the economy pump up government spending.
As the holiday shopping season comes to a close, the Conference Board's index of December consumer confidence will merit Wall Street's attention on Tuesday. The forecast calls for a December reading of 52.3, up from 49.5 in November, according to economists polled by Reuters.
Investors will note the October S&P/Case-Shiller home price index, also due on Tuesday.
On Wednesday, the Institute for Supply Management-Chicago's December index of business activity in the U.S. Midwest region is set for release. The median forecast of economists polled by Reuters puts the ISM-Chicago index at 55.0 in December, down from 56.1 in November. A reading above 50 indicates expansion.
The government report on weekly jobless claims is due to be released on Thursday. Reports on the labor market are being scrutinized closely as investors try to determine when job growth might resume.
November's surprisingly upbeat nonfarm payrolls report showed the U.S. unemployment rate dipped to 10 percent from 10.2 percent. That slight improvement in the job market led investors to wonder about the potential removal of some of the U.S. Federal Reserve's stimulus measures and the prospects for interest-rate increases next year.
But to keep the fledgling recovery going, the Fed pledged again on December 16, at the end of its last policy meeting, to keep interest rates low for an extended period of time.
The Fed is hard-pressed to prevent the economy from sliding back into a slump, which would result in a double-dip recession.
The policy of near-zero interest rates has let investors to borrow dollars cheaply to then invest in higher-yielding assets like stocks.
"We think it's a good time to be invested in equities, and equities continue to offer the best risk-reward (ratio) among the major financial assets," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.
(Reporting by Ellis Mnyandu; Additional reporting by Leah Schnurr and Chuck Mikolajczak; Editing by Jan Paschal)

U.S. Economy: Home Sales Exceed Forecasts as Buyers Seek Credit

Dec. 22 (Bloomberg) -- Sales of existing U.S. homes in November rose to the highest level in almost three years as first-time buyers rushed to take advantage of a government tax credit and lower prices.
Purchases increased 7.4 percent to a 6.54 million annual rate, exceeding the highest estimate of economists surveyed by Bloomberg News, figures from the National Association of Realtors showed today in Washington. Another report showed the economy grew a less-than-forecast 2.2 percent in the third quarter as companies cut stockpiles, pointing to manufacturing gains at the start of 2010.
The housing market is getting a boost from efforts by the government and Federal Reserve to stabilize the industry at the center of the worst recession since the 1930s. Improved consumer spending combined with record decreases in inventories will promote production, which may keep the world’s largest economy growing into 2010.
The economy is “rebounding again pretty much across the board,” said Steven Wieting, managing director of economic and market analysis at Citigroup Global Markets Inc. in New York. “We will see somewhat stronger growth,” he said, adding “it’s not going to be one of these dramatic recoveries.”
Stocks rose and Treasury securities fell after the reports. The Standard & Poor’s 500 Index added 0.4 percent to 1,118.79 at 1:28 p.m. in New York, and the S&P Homebuilder Supercomposite Index was up 3.8 percent. The yield on the 10-year Treasury note rose to 3.74 percent from 3.68 percent late yesterday.
Slower Expansion
The economy grew at a 2.2 percent annual rate in the third quarter, down from a prior estimate of 2.8 percent, revised figures from the Commerce Department showed today. Companies curbed spending and cut inventories at an even faster pace, leading to a slower pace of expansion.
Existing home sales were projected to rise to a 6.25 million annual rate, according to the median forecast of 69 economists in a Bloomberg News survey. Estimates ranged from 5.2 million to 6.5 million. The NAR revised October’s reading down to a 6.09 million pace from an initially reported 6.1 million rate.
First-time buyers accounted for 51 percent of sales last month, and 71 percent of the houses sold cost less than $250,000, the report from the real-estate agents’ group showed. The figures indicate the government’s tax credit helped boost demand.
Mortgage Rates
Fed debt purchases are helping keep mortgage rates close to record lows, while President Barack Obama’s Nov. 7 extension and expansion of the tax credit through April may provide short-term impetus to sales and construction.
The central bank last week signaled it would keep lending rates low for “an extended period” to foster growth. The average rate on a 30-year fixed mortgage was 4.94 percent last week and has averaged 4.85 percent since the end of October, according to Freddie Mac.
“Housing is on a solid footing through to the spring markets,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto, who forecast a rise to 6.5 million units. “But once foreclosed, unlisted homes go back on the market and homebuyers’ incentives come off, we’re looking at a weaker back half of next year.”
Purchases of existing homes rose 44 percent in November compared with a year earlier, the biggest increase on record. The median price was $172,600, down 4.3 percent from November 2008. The figure is influenced by the mix of sales and the drop reflects the growing proportion of lower-priced houses.
Home Prices
A report from the Federal Housing Finance Agency in Washington showed home prices fell 1.9 percent in October from a year earlier. The group’s U.S. housing index is down 10.8 percent from the April 2007 peak.
The number of previously owned unsold homes on the market fell 1.3 percent to 3.52 million. At the current sales pace, it would take 6.5 months to sell those houses compared with 7 months at the end of October. The ratio is the lowest since December 2006.
The share of homes sold as foreclosures or otherwise distressed properties was 33 percent, said Lawrence Yun, the agents group’s chief economist.
“The tax credit had the intended impact of drawing buyers in and lowering inventory,” Yun said in a news conference. “An estimated 2 million buyers have taken advantage of the credit.”
Single-Family Sales
The report showed sales of existing single-family homes rose 8.5 percent to an annual rate of 5.77 million. Sales of condos and co-ops were unchanged at a 770,000 rate.
Toll Brothers Inc., the largest U.S. luxury-home builder, projected deliveries may fall by as much as 33 percent in the 12 months through October 2010, and the average selling price may drop as low as $540,000.
“We believe it may take some time for Americans to regain confidence in our economy, their job status and the benefits of home ownership,” Robert Toll, chief executive officer at Toll Brothers, said in a Dec. 3 statement. “We anticipate a gradual recovery in housing, similar to the one that occurred in the early 1990s.”
To contact the report on this story: Bob Willis in Washington at bwillis@bloomberg.net Last Updated: December 22, 2009 13:31 EST

Merger news, analyst upgrades drive stocks higher

By Stephen Bernard and Sara Lepro, AP Business Writers , On Monday December 21, 2009, 5:05 pm
NEW YORK (AP) -- Another wave of corporate dealmaking stoked investors' confidence in the economy and carried stocks sharply higher Monday.
Analyst upgrades of Alcoa Inc. and Intel Corp. and positive momentum on President Obama's health care overhaul also helped drive a broad advance on the stock market. Major indexes closed off their highs of the day but still rose about 1 percent. The Dow Jones industrial average jumped into the black for the month.
Bond prices tumbled as stocks rose, pushing the yield on the benchmark 10-year Treasury note up to its highest level since August. The dollar strengthened, hurting commodities prices.
Stocks got an early boost Monday after French drug maker Sanofi-Aventis SA announced plans to buy U.S. health care products company Chattem Inc. for $1.9 billion, while mining equipment maker Bucyrus International Inc. said it planned to buy Terex Corp.'s mining equipment division for $1.3 billion. Dutch automaker Spyker Cars submitted a new offer to buy Saab from General Motors Co.
Robert Pavlik, chief market strategist at Banyan Partners, said the flurry of corporate deal activity is an encouraging sign of strength in the economy.
"Companies are revealing that they are in a better position financially," he said. "If they weren't feeling as confident, you wouldn't see this type of activity occurring."
The deals announced Monday follow Exxon Mobil Corp.'s $29 billion takeover of XTO Energy Inc. last week.
In other corporate news, aluminum maker Alcoa Inc. announced an $11 billion joint venture in Saudi Arabia. The deal, along with an analyst's upgrade of the stock, drove Alcoa shares up nearly 8 percent, making it the best performer among the 30 stocks that make up the Dow.
An upgrade of chip maker Intel Corp. helped boost technology stocks, while health care stocks rose broadly as a historic health bill moved closer to passage in the Senate.
The Dow rose 85.25, or 0.8 percent, to 10,414.14, after rising as much as 130 points earlier in the day. The Standard & Poor's 500 index rose 11.58, or 1.1 percent, to 1,114.05, while the Nasdaq composite index rose 25.97, or 1.2 percent, at 2,237.66.
Bond prices sank as investors abandoned the safety of government debt in favor of stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, climbed to 3.69 percent from 3.54 percent late Friday.
The dollar rose against other major currencies, making commodities more expensive for foreign buyers. Light, sweet crude for February delivery fell 70 cents to settle at $73.72 a barrel on the New York Mercantile Exchange. Gold also fell.
Monday's surge in stocks helped lift the Dow into positive territory for the month, giving it a 0.7 percent gain. Many analysts believe stocks should finish out the year strong after several weeks of listless trading.
Investors have been putting the brakes on stock buying since November, stepping back from the market following a historic rally over the past nine months. At the same time, prospects of an interest rate hike and a potential rebound in the dollar have dogged investors who spent the year taking advantage of low rates to borrow cheaply and invest in stocks and commodities.
Historically, December is the best single month for stocks, with the S&P 500 index averaging a 1.6 percent gain. So long as economic and corporate news continues to be encouraging, analysts expect the market to keep its momentum going into the new year.
Among the standout stocks, Chattem surged more than 33 percent, adding $23.16 to $93.14 after Sanofi-Aventis offered $93.50 a share for the company. Chattem, which is traded on the Nasdaq, helped lift that index to an intraday high for the year.
Alcoa shares shot up 7.9 percent after the announcement of the Saudi deal and Morgan Stanley's upgrade of the stock based on a forecast of higher aluminum prices. Shares jumped $1.15 to $15.73, after earlier hitting a 14-month high of $15.98.
About three stocks rose for every one that fell on the New York Stock Exchange, where volume was 1.01 billion shares compared with 3.16 billion shares at the same time on Friday.
Volume was exceptionally high Friday as several types of options contracts expired and S&P made changes to the S&P 500. That index is the basis for many indexed mutual funds, so those funds were forced to alter their holdings to match the reconstituted index.
In other trading, the Russell 2000 index of smaller companies rose 8.03, or 1.3 percent, to 618.60.
Overseas, Japan's Nikkei stock average rose 0.4 percent. Britain's FTSE 100 rose 1.9 percent, Germany's DAX index gained 1.7 percent, and France's CAC-40 jumped 2.1 percent.

Stocks rise to 2009 highs after Dubai

Stock market ticks higher after Dubai gets $10B bailout; Exxon deal lifts energy shares
By Sara Lepro, AP Business Writer
On 5:45 pm EST, Monday December 14, 2009

NEW YORK (AP) -- Easing concerns about debt problems overseas and a $29 billion takeover deal by Exxon Mobil Corp. nudged major stock indexes to new highs for the year.

AP - FILE - In this Nov. 27, 2009 file photo, traders move about the floor of the New York ...

The market climbed Monday after the Middle Eastern city-state of Abu Dhabi extended $10 billion to nearby Dubai to help the emirate make debt payments. Analysts have been concerned since last month that a cash crunch in the former boomtown could send ripples through global credit markets.
The market's advance was uneven after Exxon Mobil said it would acquire XTO Energy Inc. The move will help Exxon tap into the growing supply of natural gas in the U.S. and could signal that more deals are afoot in the energy industry.
A 4.3 percent drop in shares of Exxon held the Dow Jones industrial average to more modest gains than other indexes, and shaved about $2 billion off the value of Exxon's all-stock bid for XTO. The Dow added 0.3 percent, while the broader Standard & Poor's 500 index rose 0.7 percent.
Financial stocks rose after Citigroup Inc. said it would repay the $20 billion it received last year from the government's financial rescue program. The government also will sell its 34 percent stake in the company. The news came just days after Bank of America Corp. repaid the $45 billion in bailout money it owed taxpayers.
The day's advance was orderly and signaled that traders remain cautious, as they have for weeks. A big run in stocks that began in March has slowed in the past month as investors look to lock in some of their gains from 2009 and determine how to position themselves for the new year. The S&P 500 index is up 1.7 percent so far this month, after a 5.7 percent gain in November and a 64.7 percent jump since early March.
"Most people, for the most part, have wrapped up the year," said Blaze Tankersley, chief market strategist at brokerage Bay Crest Partners.
The Dow rose 29.55, or 0.3 percent, to 10,501.05, its highest close since Oct. 1, 2008. The S&P 500 index rose 7.70, or 0.7 percent, to 1,114.11, its highest finish since Oct. 2, 2008. The Nasdaq composite index rose 21.79, or 1 percent, to 2,212.10.
The yield on the benchmark 10-year Treasury note edged up to 3.56 percent from 3.55 percent late Friday as prices fell.
The dollar fell against other currencies, helping to lift most commodities prices. Commodities are priced in dollars and become cheaper for foreign buyers when the greenback falls.
Gold rose, while oil fell 36 cents to settle at $69.51 a barrel on the New York Mercantile Exchange.
Analysts said stocks are likely to drift as investors await comments about the economy and interest rates from the Federal Reserve, which wraps up its last policy meeting of the year on Wednesday.
Investors expect the central bank to keep its benchmark interest rate at a historic low level of near zero. But there is some concern that rates could rise sooner than previously thought as the economy improves.
"People simply want to know if we are going to keep this low-interest-rate environment," said Michael Feser, president of Zecco Trading in Pasadena, Calif. "That has really been fuel for this market."
The Russell 2000 index of smaller companies rose 9.42, or 1.6 percent, to 609.79.
Three stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 4.5 billion shares compared with 3.9 billion Friday.
Britain's FTSE 100 rose 1 percent, Germany's DAX index rose 0.8 percent, and France's CAC-40 gained 0.7 percent. Japan's Nikkei stock average fell less than 0.1 percent.

IRS to outline changes in the home buyer tax credit program

Revisions include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents.
By Kenneth R. Harney
December 6, 2009
Reporting from Washington - If you're thinking about applying for the new $6,500 home buyer federal tax credit or the extended $8,000 version, the Internal Revenue Service has just issued its first formal guidelines for you.Tops on the agency's list of advice: Cool it for a couple of weeks. Even if you qualify for one of the credits, don't send in any requests to the IRS quite yet. Wait until later this month when the agency publishes its revised Form 5405 with the key instructions needed to get you a check from the government.The forthcoming version of the form will incorporate the major changes to the tax credit program made by Congress in legislation signed by President Obama on Nov. 6. These include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents.In a tax bulletin issued just before Thanksgiving, the IRS emphasized that all home purchasers after Nov. 6 "must use this new version [of Form 5405] to claim the credit." Put another way: If you send in the old version -- the one you can currently download from the agency's website-- your request for the credit will probably go nowhere.The legislation -- known as the Worker, Homeownership and Business Assistance Act of 2009 -- extended the $8,000 first-time home purchaser credit until April 30 for signed contracts and June 30 for closings. The law also created a new tax credit for people who have owned a principal residence for a consecutive five of the previous eight years, and who purchase a replacement principal residence with a signed contract no later than April 30, followed by a closing no later than June 30.Qualified repeat buyers can obtain credits up to $6,500. For both the first-time and repeat buyer program, the credit is equal to 10% of the purchase price of the house, up to a maximum of either $6,500 or $8,000.The new IRS bulletin also outlined the agency's guidance on other important features of the amended credit program:* Members of the armed forces, as well as diplomatic and intelligence personnel serving in foreign countries, will get an extra year to buy a principal residence and still qualify for a credit. They will have until April 30, 2011, to enter into a contract to purchase a house, and until June 30, 2011, to close on it.* Anyone who buys a house after Nov. 6 -- even those who had intended to get in the door before the previous Nov. 30 expiration date for the $8,000 credit -- will now need to comply with several new rules. First, the house cannot cost more than $800,000. Second, no one under age 18 can claim the credit no matter what the circumstances. And finally, anyone who is counted as a dependent on another taxpayer's federal filings is ineligible for a home purchase tax credit.* The expanded income limits for purchasers after Nov. 6 range to $125,000 in "modified adjusted gross income" for single taxpayers and to $225,000 for those who file jointly. Singles with incomes between $125,000 and $145,000 may be eligible for reduced credit amounts, as are joint filers with incomes from $225,000 to $245,000. Anyone with an income above these amounts cannot qualify for either of the credits. Under the pre-Nov. 6 rules, taxpayers applying for the $8,000 credit were limited to incomes of $75,000 (single filer) to $150,000 (joint filer).The IRS continues to offer detailed consumer information resources on the credits, including questions and answers on a variety of home purchase scenarios.For example, some taxpayers seeking the extended $8,000 credit are uncertain about co-purchase and co-signing situations, especially involving parents and adult children. When a home-owning parent co-signs for a mortgage with a son or daughter, and both names appear on the note, can the son or daughter qualify for the first-time purchaser credit?The IRS says the parent clearly does not qualify for any portion of the credit since he or she already owns a principal residence. But if the son or daughter has not owned a house during the three years preceding the current purchase, and qualifies on income, he or she can be allocated the entire $8,000 credit.Similarly, when unmarried individuals co-purchase a house, and only one of them is eligible for the credit, the full $8,000 can be allocated to the eligible buyer.kenharney@earthlink.netDistributed by the Washington Post Writers Group.
Copyright © 2009, The Los Angeles Times

Stocks climb as falling dollar boosts commodities

Stocks rise as dollar slides; reports on housing, construction point to improving economy
By Tim Paradis and Ieva M. Augstums, AP Business Writers
On 3:45 pm EST, Tuesday December 1, 2009

NEW YORK (AP) -- The stock market is picking up where it left off before its scare over debt problems in Dubai.

AP - FILE - In this Nov. 27, 2009 file photo, Traders move about the floor of the New York ...
Major stock indicators rose more than 1 percent, including the Dow Jones industrial average, which jumped 120 points to send the Dow above 10,500 for the first time since October last year.
The weakening dollar again boosted stocks, a pattern that has played out for months. The cheaper U.S. currency drove up commodities prices and lifted the stocks of energy and materials companies that produce them.
Analysts said a mostly upbeat array of economic reports and easing worries about the fallout from debt struggles in Dubai gave investors who had jumped out of the market reason to return.
The market's two-day advance leaves the Dow where it was before tumbling Friday on worries that an investment fund in Dubai wouldn't be able to pay its debts and trigger another financial spiral like the one that followed the collapse of Lehman Brothers last year.
Rick Bensignor, chief market strategist at Execution LLC, said the drop in the dollar and a move into riskier assets is a sign that investors who jumped out of stocks or rushed into defensive positions are shedding worries of a wider debt problem from the Middle East.
"The market has essentially shaken it off," he said. "The whole move is as if nothing happened last week."
Economic reports were mixed, but still pointed to a strengthening trend in the economy. The Institute for Supply Management, a trade group, said overall manufacturing activity grew at a slower pace in November but that new orders rose. That signals activity could pick up in the coming months. Its employment measure grew for the second straight month after sliding for more than a year.
The snapshot of U.S. factories followed report from a Chinese industry group that said manufacturing activity grew in November for the ninth consecutive month.
Separately, the National Association of Realtors said its seasonally adjusted index of sales agreements rose in October to the strongest level since March 2006. Economists had expected the index would fall.
The government said construction spending edged higher in October, the first increase in six months.
The reports gave investors new confidence that a nearly nine-month rally in the stock market still has legs thanks to continued signs of expansion in the economy. The Dow jumped 6.5 percent in November, its best monthly gain since July, and it's up 58 percent from a 12-year low in March.
In late afternoon trading, the Dow rose 122.58, or 1.2 percent, to 10,467.42. The Standard & Poor's 500 index gained 12.55, or 1.2 percent, to 1,108.18, while the Nasdaq composite index rose 31.19, or 1.5 percent, to 2,175.79.
The ICE Futures U.S. dollar index, which measures the greenback against a basket of foreign currencies, fell 0.6 percent.
Crude oil rose $1.07 to $78.35 per barrel on the New York Mercantile Exchange. Gold rose.
Bob Froehlich, senior managing director at Hartford Financial Services, said the day's economic news addressed some of investors' biggest worries: employment, housing and China.
"What we're seeing is that we've got two of those three fixed," he said. "There are signs everywhere you look that the worst is behind us."
Froehlich said he expects the nation's unemployment rate, already above 10 percent, will worsen before it begins to improve.
Industrial names rose as commodities advanced after the reports on manufacturing and construction.
Aluminum producer Alcoa Inc. rose 25 cents, or 2 percent, to $12.77. It was one of the biggest gainers among the 30 stocks that make up the Dow industrials.
Freeport-McMoRan Copper & Gold Inc. rose $1.04, or 1.3 percent, to $83.84.
Energy stocks also rose. Schlumberger Ltd., which provides services to oil companies, rose $1.16, or 1.8 percent, to $65.05.
Home builders climbed on the day's economic reports. Beazer Homes USA Inc. advanced 13 cents, or 3 percent, to $4.43. Pulte Homes Inc. rose 20 cents, or 2.2 percent, to $9.34.
Richard Ross, global technical strategist at Auerbach Grayson in New York, said investors aren't willing to give up on the market's surge even if they have concerns it might be overdone.
"It speaks to that sort of bullish undercurrent," he said. "Whether it's misplaced optimism, that's another question."
Four stocks rose for every one that fell on the New York Stock Exchange, where volume came to 803.9 million shares compared with 751.2 million shares traded at the same point Monday.
The Russell 2000 index of smaller companies rose 8.27, or 1.4 percent, to 588.00.
Overseas markets jumped as fears eased about Dubai's credit problems. The emirate's government investment company said it was looking at restructuring part of its $60 billion in debt.
Japan's Nikkei stock average added 2.4 percent. Britain's FTSE 100 rose 2.3 percent, Germany's DAX index advanced 2.7 percent, and France's CAC-40 rose 2.6 percent.

Home prices up slightly in September

Home prices up slightly in September; analysts expect declines as foreclosures rise.

By Alan Zibel, AP Real Estate Writer
On 2:09 pm EST, Tuesday November 24, 2009
WASHINGTON (AP) -- The summer's trend of rising home prices faded at the end of the traditional home shopping season, two reports Tuesday showed.

The Standard & Poor's/Case-Shiller home price index of 20 major cities rose only 0.3 percent to 144.96 in September, but it was the fourth straight monthly increase. The seasonally adjusted index is now up more than 3 percent from its bottom in May, but still 30 percent below its peak in April 2006.
Another reading of home prices by the Federal Housing Finance Agency held steady from August to September.
Analysts expect prices to dip again this winter as foreclosures increase and economic growth remains modest. The government said Tuesday that the economy grew at a 2.8 percent rate last quarter -- less than originally estimated. And forecasts for the next several months are no better. Unemployment, meanwhile, could rise from the current 10.2 percent to as high as 11 percent next year.
"As long as the unemployment rate stays elevated, you're going to see pressure on the pace of foreclosures, which are going to find their way back onto the market, depressing prices," said Dan Greenhaus, chief economic strategist with Miller Tabak & Co.
Home prices are a key ingredient to rebuilding the economy. Homeowners feel wealthier when their property appreciates in value and are more likely to spend money. Rising prices also help millions of homeowners who owe more to the bank than their homes are worth.
Currently, roughly one in four homeowners are in that situation, according to First American CoreLogic, a real estate information company. And a record 14 percent of homeowners with a mortgage are either behind on their payments or in foreclosure, the Mortgage Bankers Association said last week.
"We are very worried about the potential for a huge wave of supply next year, both from private sellers and banks," wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics. "Prices could easily reverse their recent gains."
Spring and summer are typically the best times of the year for the housing market, because families prefer to move between school years. And this year's sales were aided by a tax credit for first-time buyers, which drove up sales nearly 30 percent between May and October.
In the winter months, fewer homeowners put their properties on the market. That means a bigger proportion of the sales will be foreclosures.
Last winter, sales of foreclosures and other distressed properties made up about half of all sales in February and March, compared with about a third over the summer, according to the National Association of Realtors.
With those low-priced properties dominating sales, Barclays Capital economist Michelle Meyer forecasts an 8 percent drop in prices before they hit bottom next spring, but said, "I don't expect another freefall."
Continuing economic woes will likely force many consumers to shorten their Christmas shopping lists. Consumer confidence in the economy improved slightly in November from October, but shoppers are still gloomy, the Conference Board reported Tuesday.
In the Case-Shiller report, home prices rose in 11 major cities, with the strongest gains in San Francisco and Minneapolis, according to the Case-Shiller report. That's a shift from the summer, when price gains were broad. In July, for example, prices were up in 17 cities.
Prices fell by the most in Las Vegas and Cleveland. Compared with a year earlier, the 20-city index was down about 9 percent, the smallest year over year decline since January 2008.
"With housing remaining an albatross around the economy's neck, nothing would perk things up more than some increases in home prices," wrote Joel Naroff, chief economist at Naroff Economic Advisors. "That seems to be happening."
The Commerce Department on Wednesday will release new home sales data for October. Economists expect a 2 percent increase from September to an annualized rate of 410,000, according to Thomson Reuters.
AP Economics Writer Jeannine Aversa contributed to this report.

Weak dollar, home sales data carry stocks higher

NEW YORK (AP) -- Investors halted stocks' three-day losing streak Monday, sending prices higher across the market on a lower dollar and better-than-expected home sales numbers.

AP - Specialists work on the floor of the New York Stock Exchange Monday, Nov. 23, 2009.
Major stock indexes soared more than 1 percent in afternoon trading, including the Dow Jones industrials, which touched a new 13-month high.
Investors found plenty reasons to buy as the day's developments pointed to two trends: an improving economy and interest rates that are expected to stay low:
--The National Association of Realtors news that October home sales rose more than 10 percent revived investors' optimism after disappointing data on the housing industry last week raised concerns about the strength of the economic recovery.
--Charles Evans, head of the Federal Reserve Bank of Chicago, was quoted as saying he saw little risk that the economy would slide back into recession, although unemployment is unlikely to fall until next summer. And James Bullard, president of the Federal Reserve Bank in St. Louis, said the U.S. Fed should continue to buy mortgage-backed securities after the program is supposed to expire in March. That would continue to keep interest rates low.
--The dollar, a key factor in stock trading in recent months, extended its pullback, sending prices for commodities including gold and oil higher and in turn, the stocks of companies that produce them.
Meanwhile, bond prices retreated as investors regained their appetite for risk.
Low interest rates and a resulting slide in the dollar have been big drivers behind the stock market's eight-month rally. Low interest rates enable investors to borrow cheaply and buy assets like stocks and commodities that have the potential to earn higher yields than cash.
Investors were buying Monday on somewhat contradictory forces in the market. The strength in housing is a sign of an improving economy, which could argue in favor of raising rates, while the dollar's weakness points to rates remaining low. Analysts say investors who still have plenty of available cash are primed to buy, and so the market may also be rising on its own momentum.
"There's still $2 trillion of cash that needs to find its way into the stock market," said Phil Orlando, chief equity market strategist at Federated Investors.
Orlando said investors will continue to look for dips in the rally as a way to get into the market, not wanting to end the year without participating in some of the big gains stocks have made.
"Bearish managers are sweating bullets that they're not going to be able to get that cash in the market and they need to do that," he said. "That is why any pullback we've seen this year has been met with a wave of cash that has pushed stocks up higher."
At the same time, many portfolio managers have cooled their buying, not wanting to risk losing the big returns they've made since stocks began rallying in March. Those opposing forces are likely to result in choppy trading over the next few weeks, analysts said, which will be exacerbated by light volume as the holidays approach.
The Dow Jones industrial average rose 124.32, or 1.2 percent, to 10,442.48, after losing 120 points over the previous three days. Earlier, the Dow rose as much as 177 points to a new 13-month high of 10,495.61.
The Standard & Poor's 500 index rose 13.94, or 1.3 percent, to 1,105.32, while the Nasdaq composite index rose 26.80, or 1.3 percent, to 2,172.84.
About four stocks rose for every one that fell on the New York Stock Exchange, where volume came to a low 629.2 million shares, compared with 803.1 million at the same time on Friday. Many traders were already on vacation for Thanksgiving, and the decreased volume can contribute to price swings.
The ICE Futures U.S. dollar index, a widely used measure of the dollar against other currencies, fell 0.7 percent in afternoon trading. As the dollar fell, gold prices surged to a new high of $1,174 an ounce. Oil rose 20 cents to $77.67 a barrel on the New York Mercantile Exchange.
The spike in commodities lifted the shares of energy companies and materials producers. Chevron Corp. rose $2.04, or 2.7 percent, to $78.81. Weyerhaeuser Co. gained $1.32, or 3.5 percent, to $39.18.
Bond prices fell as investors moved back into stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.38 percent from 3.37 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.03 percent from 0.01 percent.
The yield on the three-month bill briefly dipped into negative territory last week as worries about the economy took hold and investors retreated to safe havens like the dollar and government debt as they sold stocks.
Investors wanting to lock in profits as the year comes to a close are willing to earn very little to park their cash in a safe place.
"It's not a time for taking chances," said Quincy Krosby, market strategist at Prudential Financial.
TheRealtors said home sales rose 10.1 percent in October to the highest level in two and a half years, spurred by a tax credit for first-time homebuyers. Analysts had been expecting a 1.4 percent increase in sales. The credit, due to end at the end of the month, has been extended into 2010.
"You could be completely cynical and say this market is moving up today because volume is low and the dollar is weak, but I would have to add that we're getting confirmation on the sustainability of the economic recovery by the actual fundamentals," Krosby said, referring to the housing report.
In other trading, the Russell 2000 index of smaller companies rose 10.08, or 1.7 percent, to 594.76.
Overseas, Britain's FTSE 100 rose 2 percent, Germany's DAX index soared 2.4 percent, and France's CAC-40 jumped 2.3 percent. Markets in Japan were closed for a holiday.

Stocks jump as retail sales rebound in October

Stocks vault higher after retail sales rebound in October; Weakening dollar lifts commodities

By Stephen Bernard and Tim Paradis, AP Business Writers
On 2:21 pm EST, Monday November 16, 2009

NEW YORK (AP) -- Investors kept the stock market's upward momentum going Monday, sending shares sharply higher after retail sales rebounded more than expected in October and the dollar extended its slide.

AP - FILE - In this Sept. 15, 2008 file photo, a Wall St. street sign is seen near the ...
Major stock indexes rose more than 1 percent to new 13-month highs, including the Dow Jones industrial average, which jumped 145 points. The Standard & Poor's 500 index topped 1,110, the first convincing move above 1,100 after hovering around that level for the past month.
The Commerce Department said retail sales rose 1.4 percent in October, easily surpassing the 0.8 percent increase forecast by economists polled by Thomson Reuters. It was a sharp rebound following the 2.3 percent drop in September. Excluding the gain from autos, however, sales rose just 0.2 percent, half of what economists predicted.
Jamie Cox, a managing partner at Harris Financial Group, said the sales growth was a good sign heading into the holiday shopping season, especially because the data were not affected by factors such as sales tax holidays and government stimulus programs that had been present in the preceding months.
The weaker dollar lifted gold to a new record and pumped up prices of other commodities, including oil. That, in turn, helped shares of energy and materials companies.
Stocks briefly pared their gains after Federal Reserve Chairman Ben Bernanke said policymakers would monitor the dollar while at the same time repeating that the Fed will hold interest rates low until the economy strengthens. That gave a short-lived boost to the dollar.
The market's own dynamics fed some of the day's gains, analysts said.
Dan Deming, a trader with Stutland Equities, said the S&P 500's move above 1,100 gave some investors a shot of confidence and led to short-covering, which tends to amplify gains in the market. Short-covering occurs when investors have to buy stock after having earlier sold borrowed shares in a bet they would fall.
"We're breaking through the 1,100 mark, which is psychologically significant, and the market is seeing a little pop from that," Deming said.
In midafternoon trading, the Dow rose 154.86, or 1.5 percent, to 10,425.33. The broader S&P 500 index rose 19.28, or 1.8 percent, to 1,112.76. It traded above 1,100 in mid-October but hasn't closed above that benchmark since October last year. The S&P 500 index first finished above 1,100 more than a decade ago, in March 1998.
The Nasdaq composite index rose 34.52, or 1.6 percent, to 2,202.40.
The Russell 2000 index of smaller companies advanced 17.21, or 2.9 percent, to 603.49.
The ICE Futures US dollar index, which measures the dollar against other currencies, fell 0.6 percent. Gold reached a record $1,143.40 an ounce.
Investors have been using the weak dollar to finance purchases of higher-yielding assets. The move, what's known as a "carry trade," can further weaken the dollar.
Bond prices rose, pushing down yields. The yield on the benchmark 10-year Treasury note fell to 3.37 percent from 3.42 percent late Friday.
General Motors Co. said it lost $1.2 billion in the period since emerging from bankruptcy and the end of the third quarter on Sept. 30. Despite the loss, GM said it will begin to repay $6.7 billion in government loans and was seeing a stabilization in its business.
Home improvement retailer Lowe's Cos. reported lower profits that matched analysts' expectations and said it was seeing stabilization in some of the hardest hit housing markets. The company's shares fell 6 cents to $21.79.
Investors will get more insight into consumer spending from retailers Home Depot Inc., Target Corp. and TJX Cos., which are due to report earnings Tuesday.
Cox said the wide range of retailers reporting earnings during the week will provide signals into whether shoppers are willing to step up their spending and move back toward more expensive goods. Investors will be parsing any updated forecasts from the companies ahead of the holiday shopping season.
The stock market is coming off a strong week, which added more than 2 percent to major indexes. On Friday the market was buoyed by encouraging earnings reports and outlooks from major retailers Abercrombie & Fitch Co. and J.C. Penney Co. as well as The Walt Disney Co.
Crude oil rose $2.84 to $79.19 per barrel on the New York Mercantile Exchange.
Energy stocks rose. Baker Hughes Inc. rose $2.37, or 5.7 percent, to $43.82, while Devon Energy Corp. advanced $3.93, or 5.8 percent, to $71.66.
Freeport-McMoRan Copper & Gold Inc. rose $3.37, or 4.1 percent, to $84.94.
Ten stocks rose for every one that fell on the New York Stock Exchange, where volume came to 624.9 million shares compared with 557.4 million shares traded at the same point Friday.
Overseas, Japan's Nikkei stock average rose 0.2 percent after that country's economy grew for the second straight quarter, marking an end to the recession there.
Investors also drew confidence from the results of the 21-member Asia-Pacific Economic Cooperation forum, which said it would maintain stimulus spending until a global economic recovery is at hand.
Britain's FTSE 100 rose 1.6 percent, Germany's DAX index gained 2.1 percent, and France's CAC-40 rose 1.5 percent.

Proud Brother

Some of you may not know, but I have an older brother that lives in California. He too is in the construction business. My brother this year closed on his first home and took advantage of the $8K tax credit. I am so proud that he worked really hard to save up his down payment and position himself to afford his first home. But what I am really proud of is how he has overcome adversity.
When my brother was in high school he was in a bad car accident and eventually lost his left leg. When he lost his leg, I thought he would just give up on life. Was I wrong, really wrong. He is much more active than I have ever been (see photo). He is thriving at work and enjoying his beautiful family. I am such a proud brother. Way to go bro!

Dow jumps 204 to high for year...

By Tim Paradis, AP Business Writer
On 5:59 pm EST, Monday November 9, 2009
AP - FILE - In this Sept. 25, 2008 file photo, a Wall St. street sign is shown in front ...

NEW YORK (AP) -- The Dow Jones industrial average stormed to its highest level in more than a year Monday as a falling dollar boosted prices for gold, oil and other commodities. Stocks also jumped as investors grew more confident that governments around the world will keep interest rates low to help the global economy.
Energy and materials stocks led the market. The major indexes rose 2 percent and the Dow jumped 200 points for the second time in three days, reaching its highest level in 13 months.
News that the Group of 20 countries will keep economic stimulus measures in place signaled to investors that rates will remain low. With U.S. rates near zero, the G-20 news lessened demand for the dollar.
Even as investors are waiting for more signs that the economy is recovering, they've been focusing on the dollar when they make buy and sell decisions. Investors around the world see the dollar as weaker than other currencies, and so they're using it for what's known as "carry trade," to finance purchases of investments in other countries. That trend takes the dollar down further when those purchases are made.
But some analysts are questioning investors' stock moves given the still-weak economy, and warn that stocks and other investments could suffer big losses if the dollar were to turn higher.
"It feels like it's on fumes," said Sean Simko, head of fixed income management at SEI Investments in Oaks, Pa., referring to the market's advance. "Although fundamentals are catching up, they're not caught up."
He said the dollar's drop and the current surge in stocks and commodities are making it hard for investors to get a clear picture of how fast the economy is rebounding.
Still, many investors like a weaker dollar because it helps U.S. exporters by making their goods cheaper to overseas buyers and giving the companies a boost when they convert profits from abroad to dollars.
The ICE Futures U.S. dollar index, which measures the greenback against a basket of foreign currencies, fell to its lowest level in 15 months. The dollar rose last year and early this year but the index has been sliding for the past eight months since major stock indicators bounced off 12-year lows.
Although investors have based most of their decisions on the economy, they've also been funneling money into stocks when the dollar weakens and pulling it out when the greenback rises.
Commodities prices, meanwhile, tend to rise when the dollar is down, so gold topped $1,100 an ounce. Crude oil rose $2 to settle at $79.43 per barrel on the New York Mercantile Exchange, helped in part by Tropical Storm Ida, which threatened the Gulf of Mexico.
Energy and materials stocks rose along with commodities prices, and investors' enthusiasm for those stocks spilled over to other industries.
Brian Battle, vice president of trading at Performance Trust Capital Partners in Chicago, said the strength of the carry trade is giving an artificial lift to a range of assets, including stocks.
"There's cheap money that's going to be pumping its way into the system," he said. "That money is finding a home in the currency and commodity markets."
The Dow rose 203.52, or 2 percent, to 10,226.94, its highest finish since Oct. 3, 2008. The Dow's gain of 455 points, or 4.7 percent, since Wednesday is its biggest four-day climb since July.
The index rose as high as 10,228.23, topping its previous 12-month trading high of 10,119.46 set last month.
The broader Standard & Poor's 500 index rose 23.78, or 2.2 percent, to 1,093.08, its sixth straight advance. The Nasdaq composite index rose 41.62, or 2 percent, to 2,154.06.
Five stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 4.6 billion shares, compared with 4.3 billion Friday.
Bond prices were little changed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 3.49 percent from 3.50 percent late Friday.
The dollar's slide also came as the International Monetary Fund said the dollar remained "on the strong side." That added to selling pressure.
Jason Pride, director of research at Haverford Investments outside Philadelphia, isn't troubled by the slide in the dollar because he sees it as another sign that fear in the market is easing after the pounding of the past two years. Investors rushed into the dollar as they sought the safest assets.
"As the economy gets back to normal from what were very dire circumstances earlier this year the equity markets are going to be moving up and the dollar should be falling," he said.
"You're seeing a lot of pieces move off each other and the dollar is driving a lot of it," he said.
Retailers had some of the biggest gains in the market's broad advance. Abercrombie & Fitch Co. rose $2.58, or 7.4 percent, to $37.59 after analysts said international growth would boost growth at the teen apparel retailer. The company is scheduled to release its fiscal third-quarter numbers Friday.
Investors are looking for any insight into how much consumers are spending as the holidays approach. J.C. Penney Co., Macy's Inc. and Wal-Mart Stores Inc. are among the stores expected to post quarterly results this week.
Among energy stocks, Exxon Mobil Corp. rose 69 cents, or 1 percent, to $72.85. Gold producer Newmont Mining Corp. rose $1.52, or 3.1 percent, to $50.56 and hit a new high for the year.
The Russell 2000 index of smaller companies rose 11.96, or 2.1 percent, to 592.31.
Overseas, Britain's FTSE 100 rose 1.8 percent, Germany's DAX index jumped 2.4 percent, and France's CAC-40 rose 2.1 percent. Japan's Nikkei stock average rose 0.2 percent.

Obama Signs Homebuyer Tax Credit Extension

RISMEDIA, November 9, 2009—President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010.
The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.
The following details apply to the homebuyer tax credit expansion:

Who is Eligible-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.-All U.S. citizens who file taxes are eligible to participate in the program.
Income LimitsHomebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.-For married couples filing a joint return, the combined income limit is $225,000.-Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.-The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.
Effective Dates-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.
Types of Homes that Qualify-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.
Tax Credit is Refundable-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
-For example:-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.
Payback ProvisionsThe tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
The www.federalhousingtaxcredit.com site is being updated. Check the site next week for more detailed information on the new tax credit.
For more information, visit http://www.nahb.org/.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Don’t miss these top headlines on RISMedia.com:Where Are All the REOs?15 Billion in Credit Card Fees Charged! …and the New “Credit Card Act”Read more: http://rismedia.com/2009-11-08/obama-signs-homebuyer-tax-credit-extension/#ixzz0WJ3lfmPx

Cisco beats forecasts, points to recovery

NEW YORK (Reuters) - Cisco Systems Inc (NasdaqGS:CSCO - News) posted a stronger-than-expected quarterly profit and signaled that recovery was well on its way, as businesses are investing in network equipment again after cutting back for the past year.
Chief Executive John Chambers gave a revenue forecast for the current quarter, its fiscal second, that topped Wall Street expectations and said that business conditions had hit bottom at least six months ago. Shares of Cisco rose 3.7 percent.
"Q4 fiscal 09, as we indicated in last quarter's conference call, looking back, was clearly the tipping point," Chambers told analysts on a conference call on Wednesday.
Cisco also said its board of directors authorized up to $10 billion in additional share repurchases, bringing its total outstanding repurchasing program to around $13.1 billion.
Cisco is the world's top vendor of routers, switches and other network equipment used by global businesses, including phone companies as well as governments. Many of those customers had put off large investment decisions during the recession, but analysts have said many were beginning to shift gears toward more spending to cope with growing Internet traffic.
Revenue in its fiscal first quarter, ended October 24, fell 13 percent from a year earlier to $9.0 billion. But that was up 6 percent quarter-on-quarter, and higher than the average Wall Street forecast of $8.7 billion, according to Thomson Reuters I/B/E/S.
The company forecast fiscal second quarter revenue to increase 1 percent to 4 percent from a year earlier, or a rise of 2 percent to 5 percent compared to the first quarter. The average Wall Street estimate for the second quarter had implied a revenue decline of 1.3 percent year on year.
"It's better than expected. On first blush, it's very good news, and will be good for the market, but we need to hear what they say about capital spending," said Jim Awad, managing director at Zephyr Management.
Net profit was $1.8 billion, or 30 cents a share, compared with $2.2 billion, or 37 cents a share, a year earlier. Excluding items, profit was 36 cents a share compared to 42 cents a share a year earlier, and higher than the average Wall Street forecast of 31 cents.
Shares of Cisco rose to $24.15 in after-hours trading from their Nasdaq close of $23.29. The stock has climbed more than 40 percent since the start of the year.
(Reporting by Ritsuko Ando, additional reporting by Ian Sherr and Caroline Valetkevitch; Editing by Bernard Orr and Tiffany Wu)

Sweet Home Oregon

I just got back from Alabama. My family and I visited close friends. I love the South. The people are so sweet and if you want the best BBQ, visit the South. Pictured is my stuffed potato. It was stuffed with butter, sour cream, cheese, smoked beef brisket, BBQ sauce, ranch dressing, and topped with dill pickles. Do you believe that this calorie buster was only $6.99???

As you know, when ever I take a vacation, I love to check out the local real estate market. Well, no surprise, the homes are $50K-$100K cheaper than our homes here in the Portland Metro Area. The cost of living is much better there, but you cannot beat the lifestyle and weather here. I loving visiting the South, but love coming home to the Pacific NW even more!

Chip-maker Allvia buys Hillsboro plant

What does this article mean for residents of Hillsboro? It means that when companys move to Hillsboro, more jobs are created and with jobs, housing is needed. Read through this and tell me your thoughts.

Chip-maker Allvia buys Hillsboro plant
Portland Business Journal

Chip-maker Allvia Inc. has acquired the 178,000-square-foot Hillsboro manufacturing plant once operated by Etec Systems Inc.
The Sunnyvale, Calif.-based company said over the next few months it will acquire the equipment to start chip-production in the plant some time next year.
It did not say how many people it plans to employ.
Allvia now manufactures in Sunnyvale. It will keep both facilities operating with a plan to eventually move full volume production to the Hillsboro site.
The company announced in February that it secured $5 million from private investors to expand its manufacturing capacity, bringing the total investment in the company to $25 million. It used a portion of those funds to acquire the Hillsboro property.
Allvia has not disclosed details of the acquisition. But commercial real estate firm Colliers International announced last week that the facility — at 21515 NW Evergreen Parkway and marketed as the “E-Tech Building” — was sold for $5.25 million to Jacques Ventures LLC of San Mateo, Calif.
The site was the previous home of Etec Systems Inc., a division of Santa Clara, Calif.-based chip-maker Applied Materials Inc. (Nasdaq: AMAT).
Applied Materials said in it’s 2008 annual report that it sold the Hillsboro building, 26 acres of Hillsboro land, and two Asian facilities, for $38 million in fiscal 2007.

Home sales rise 9.4 pct. in Sept., beat forecast

Home sales rise 9.4 pct. in Sept., beat forecast
September home sales up 9.4 percent, beating expectations as tax credit spurs sales
By Alan Zibel and Alex Veiga, AP Real Estate Writers
On 11:57 pm EDT, Friday October 23, 2009

WASHINGTON (AP) -- Racing to complete their purchases before a tax credit for first-time owners expires, homebuyers pushed sales up last month by the largest amount in more than 26 years.

AP - Chart shows the 10 best and worst housing market sales percent change for August 2009 from the previous ...

After jumping 9.4 percent in September, home resales are up nearly 24 percent from the bottom in January, the National Association of Realtors said Friday. But the housing market's momentum could easily peter out if Congress doesn't extend the credit of up to $8,000 for first-time buyers beyond its current Nov. 30 deadline.
John Kindschi, a 33-year-old aircraft mechanic who lives north of Seattle, didn't want to miss out. After a yearlong search, he and his family bought a three-bedroom house for $206,000, completing the purchase last week.
"It was getting down to crunch time," he said. "We had no idea if the credit was going to be extended."
Nationwide sales rose to a seasonally adjusted annual rate of 5.57 million last month, from a downwardly revised pace of 5.1 million in August. It was the strongest month in two years and beat economists' forecast of 5.35 million, according to Thomson Reuters. Sales, however, are still down 23 percent from their peak four years ago.
In another positive sign, the inventory of unsold homes on the market fell almost 8 percent to 3.6 million. That's less than an eight-month supply at the current sales pace, and the lowest level since March 2007.
The competition for low-priced foreclosures has become fierce in places like Las Vegas and Southern California. Aldo Martin, 28 of Covina, Calif., had to put offers on 16 houses before having one accepted this week.
"We'd go look at eight houses and if we liked five of them, make offers," said Martin, a sales supervisor. "Your odds are better. We got aggressive."
Marty Rodriguez, owner of a Century 21 real estate brokerage east of Los Angeles, said half of her transactions last month were low-priced foreclosures and short sales, where the sales price is lower than the mortgage balance.
"You have so many buyers in that lower price range," she said. "Sometimes my agents are writing five offers for one buyer on different properties just trying to get one property -- and not getting accepted. It's a little crazy."
Still, economists caution that the pain from the worst housing bust since the Great Depression probably isn't over yet.
While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that prices, which recently stabilized, will resume their descent. The median sales price last month was $174,900, down almost 9 percent from $191,200 a year earlier, and slightly lower than August's median of $177,300.
The main reasons prices are weak: Unemployment and foreclosures are still rising. With the current 9.8 percent jobless rate expected to rise as high as 10.5 percent next year, foreclosures will continue to set records.
Nationwide, more than 3 million households are either three months behind on their payments or in foreclosure, according to First American CoreLogic, a research firm.
Many delinquent borrowers are still being evaluated for help under the Obama administration's mortgage assistance plan. If they don't qualify, the odds are high they will lose their homes.
Fears about job losses are stifling some sales, said David Hudson, an agent with Exit Realty Platinum outside Atlanta.
"Buyers are still nervous," he said. "They're worried about buying a house, and then all of a sudden, I might not have a job."
A steady job as an operating room nurse is one reason Hope Carson, 41, is able to buy a home. She's planning to make an offer next week on a foreclosed property outside Atlanta and is hoping the deal will close in time for her to qualify for the tax credit.
After searching for about a month in a price range of about $140,000, she has narrowed her choices to two homes, both in foreclosure.
"Is there a little bit of guilt behind that? Absolutely," she said. "You know that somebody was forced to move out."
To entice more buyers like Carson, Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend the tax credit through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.
Realtors and homebuilders are loudly in favor, arguing that the tax credit is crucial to get the housing market back on its feet.
"We are not there in terms of removing the consumer fear factor," said Lawrence Yun, the Realtors' chief economist.
However, some analysts say the tax credit may not be as critical to the housing market as real estate agents suggest. The Realtors association has "an incentive to talk up the effects of the credit as it is urging Congress to extend it, and it therefore may be exaggerating the credit's effects," wrote Nomura Securities economist Zach Pandl.
One potential roadblock to an extension also emerged this week.
There are concerns that some of the 1.5 million applications for the tax credit are fraudulent. The Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18.
Alex Veiga reported from Los Angeles.

Fed survey: Housing, manufacturing drive recovery

Fed survey finds housing, manufacturing improvements drive early stages of recovery

In this June 17, 2009 file photo, James Sellers, left, vice president of AUS Manufacturing Co.

WASHINGTON (AP) -- Improvements in housing and manufacturing are driving the early stages of the economic recovery, according to a Federal Reserve survey released Wednesday.

AP - FILE - In this June 17, 2009 file photo, James Sellers, left, vice president of AUS Manufacturing Co., ...
The Fed's latest snapshot of business conditions nationwide found "many sectors" of the economy either stabilized or logged modest improvements over the last six weeks. The pickups, though, often were from "depressed" levels of activity.
Still, the new report adds to evidence that a recovery has started from the worst recession since the 1930s. Only two of the Fed's 12 regions -- Atlanta and St. Louis -- reported weaker overall economic activity.
An $8,000 credit for first-time homebuyers boosted the housing sector. There's been concern among private economists and some lawmakers that recent gains in housing will fizzle out when the credit ends. It is slated to expire Nov. 30, although some in Congress are mulling an extension.
Meanwhile, factories increased production as businesses restocked depleted inventories. Part of that restocking was due to the now-defunct Cash for Clunkers rebate program, which caused a brief burst in car sales.
Both housing and manufacturing continued a "pattern of improvement that emerged over the summer," the Fed observed.
By contrast, the Fed said weakest link in the recovery was commercial real estate. Conditions were described as "either weak or deteriorating" across all 12 regions surveyed.
Consumer spending also remained weak, the Fed said.
Consumers, whose spending accounts for about 70 percent of economic activity, are expected to stay cautious given rising job losses, stagnant incomes and hard-to-get credit.
"Reports of gains in economic activity generally outnumber declines, but virtually every reference to improvement was qualified as either small or scattered," the Fed survey said.
For instance, Dallas cited slight improvements in residential real estate and at staffing firms. New York noted gains predominantly in manufacturing and retail. Philadelphia, Cleveland and San Francisco cited small pickups in manufacturing. Kansas City noted upticks at technology companies, while Richmond observed revenue gains at service companies.
The nation's unemployment rate climbed to a 26-year high of 9.8 percent in September, and is expected to top 10 percent this year. Economists predict it will rise as high as 10.5 percent by the middle of next year before slowly drifting down.
Districts reported "little or no increase to either price or wage pressures," but there were some references to downward pressures, according to the survey.
In a separate report, the Labor Department found that unemployment rose in 23 states last month. While layoffs have slowed, companies remain reluctant to hire. Forty-three states reported job losses in September; only seven gained jobs.
Many analysts believe the economy started to grow again in the third quarter at a pace of at least 3 percent, and is continuing to expand now. The government releases third-quarter results next week. If analysts are right, that would mark a turning point for the economy, which has contracted for a record four straight quarters.
The central bank's survey findings will figure into discussions when Fed Chairman Ben Bernanke and his colleagues meet Nov. 3-4. The Fed is expected to keep interest rates at record low at that time and probably into next year to help foster the recovery.
Inflation, meanwhile, was under wraps, the Fed report suggested. That gives the central bank leeway to keep rates low.
Competition, cautious consumers and expectations for a lethargic recovery mean companies won't be rushing to boost prices, the report said.
Known as the Beige Book, the survey does not include precise figures, but rather offers anecdotal snapshots of economic and financial activity nationwide.

By Jeannine Aversa, AP Economics Writer
On 3:45 pm EDT, Wednesday October 21, 2009

Who Made Our Nice Home???

The other night I was getting ready to put my 3-year-old son to bed, and was telling my wife how much I appreciated her for making our home so nice. My son stopped what he was doing and replied, "No Dad, Arbor made our home nice!"

My wife and I had to laugh at our son's wit. For those of you who don't know I was an Arbor customer before I was an Arbor employee. As soon as our son started being interested in Bob the Builder, he began to ask us who built our house. With that, we told him the whole story about Arbor building our home from the dirt up...and not only building our home but our beautiful neighborhood as well. I guess that really stuck with him because (as hard as my wife works to make the inside of our home) Arbor will always get the credit for our house.

If you have ever worked with me (or come into look for a home in the future) you will notice my passion for my job and the company. Yes I love the job that I do, but part of the reason is that I believe in the product. I am not just a Realtor; I am a happy homeowner.

Stocks rise as earnings reports top expectations

Stocks climb as earnings jump past expectations; Eaton, Gannett gain after results top views

By Ieva M. Augstums and Tim Paradis, AP Business Writers
On 5:27 pm EDT, Monday October 19, 2009


NEW YORK (AP) -- Investors are seeing the kind of earnings numbers that make them feel confident about stocks.

AP - Specialist Glenn Carell, right, works on the floor of the New York Stock Exchange Monday, Oct. 19, 2009. ...
The stock market stepped to new highs for the year Monday after a handful of earnings reports bolstered hopes that the economy is coming back sooner than many analysts had thought.
That is helping some investors move past a bout of nerves about whether expectations for the economy are stretched too far. The Dow Jones industrial average rose 96 points, while the Standard & Poor's 500 index rose but ended just shy of 1,100, having topped that level during the day.
Industrial equipment maker Eaton Corp. said it was seeing improvement in key markets and raised its full-year profit forecast. Newspaper publisher Gannett Co. managed to post a profit despite a sharp fall in revenue.
The gains came ahead of quarterly earnings released after the closing bell from Apple Inc. and Texas Instruments Inc. Both wound up beating forecasts.
Apple blew past expectations because of increased sales of the iPhone, while Texas Instruments' profit and sales came in above the improved forecast the chip maker issued just last month. Share of both tech companies gained in after-hours electronic trading.
The reports are adding to investors' expectations for the technology industry. Last week, Google Inc. and chipmaker Intel Corp. posted solid earnings. Many tech companies have strong balance sheets have large amounts of cash that have enabled them to weather the recession better than companies in other industries.
Caterpillar Inc., Coca-Cola Co. and DuPont are slated to report results before the opening bell Tuesday.
A drop in the dollar also helped push commodity prices higher, which in turn helped stocks of materials and energy companies.
Investors are relieved to see better results in a broad range of industries following some downbeat news last week from major banks, which reported rising loan delinquencies.
Burt White, chief investment officer at LPL Financial in Boston, noted that three of every four companies have topped analysts' expectations for earnings in the July-September quarter. While most have yet to report, the early results are a sign that companies are holding up better than many had predicted.
"The recovery is moving faster than analysts can sharpen their pencils and revise their estimates upward," he said.
The Dow rose 96.28, or 1 percent, to 10,092.19. The broader S&P 500 index rose 10.23, or 0.9 percent, to 1,097.91. For both indexes, it was the highest close since Oct. 3 last year.
The Nasdaq composite index rose 19.52, or 0.9 percent, to 2,176.32.
The day's advance came on the 22nd anniversary of the 1987 stock market crash known as "Black Monday," which saw the Dow plunge a record 22.6 percent on worries about interest rates and slowing economic growth.
Bond prices were mixed. The yield on the benchmark 10-year Treasury note fell to 3.38 percent from 3.42 percent late Friday.
Investors grew hopeful that Federal Reserve policymakers would be able to withdraw some of the money supporting the economy as conditions improved. That could help prevent inflation, which is a worry for investors because of the huge amounts of money the government has pumped into the financial system.
The New York Federal Reserve, which carries out the central bank's market operations, said it has been preparing plans for how it could begin weaning the economy from monetary stimulus.
The dollar mostly fell against other major currencies, while gold prices rose. The ICE Futures U.S. dollar index, which tracks the dollar against other major currencies, fell 0.3 percent. It is at its lowest level since August 2008.
Light, sweet crude rose $1.08 to settle at $79.61 per barrel on the New York Mercantile Exchange. The Reuters/Jefferies CRB index, a measure of commodities trading, jumped 1.3 percent to its highest level of the year.
Among companies posting earnings, Eaton rose $3.47, or 5.7 percent, to $63.89, while Gannett advanced $1.06, or 8.2 percent, to $14.06.
Apple rose $1.81, or 1 percent, to $189.86 in the regular session and rose 6.7 percent in electronic trading after its report. Texas Instruments rose 77 cents, or 3.4 percent, to $23.52 and added 2 percent in late trading.
Bob Jergovic, chief investment officer at CLS Investments in Omaha, Neb., said investors are now trying to determine whether a recovery in corporate profits will continue and, if so, whether that will help the overall economy if companies are more willing to hire and make investments.
"We're in that phase where the market has really got to sort it out," he said. "Can we make that handoff from a profit recovery to an economic recovery?"
More than two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 1.4 billion Friday.
The Russell 2000 index of smaller companies rose 6.16, or 1 percent, to 622.34.
Britain's FTSE 100 rose 1.8 percent, Germany's DAX index rose 1.9 percent, and France's CAC-40 advanced 1.7 percent. Japan's Nikkei stock average fell 0.2 percent.

Dow closes above 10,000 for 1st time in a year

Back on September 28th, I had predicted that the Dow would jump to 10k. Well here it is. Now where do we go?

Dow closes above 10,000 for 1st time in a year
DJ comeback: Stock market's best-known barometer closes above 10,000 for 1st time in a year

By Tim Paradis, AP Business Writer
On 5:49 pm EDT, Wednesday October 14, 2009

The best-known barometer of the stock market entered five-figure territory again Wednesday, the most visible sign yet that investors believe the economy is clawing its way back from the worst downturn since the Depression.
The milestone caps a stunning 53 percent comeback for the Dow since early March, when stocks were at their lowest levels in more than a decade.
"It's almost like an announcement that the bear market is over," said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston. "That is an eye-opener -- 'Hey, you know what, things must be getting better because the Dow is over 10,000.'"
Cheers went up briefly when the Dow eclipsed the milestone in the early afternoon, during a daylong rally driven by encouraging earnings reports from Intel Corp. and JPMorgan Chase & Co. The average closed at 10,015.86, up 144.80 points.
It was the first time the Dow had touched 10,000 since October 2008, that time on the way down.
"I think there were times when we were in the deep part of the trough there back in the springtime when it felt like we'd never get back to this level," said Bernie McSherry, senior vice president of strategic initiatives at Cuttone & Co.
Ethan Harris, head of North America economics at Bank of America Merrill Lynch, described it as a "relief rally that the world is not coming to an end."
The mood was far from the euphoria of March 1999, when the Dow surpassed 10,000 for the first time. The Internet then was driving extraordinary gains in productivity, and serious people debated whether there was such a thing as a boom without end.
"If this is a bubble," The Wall Street Journal marveled on its front page, "it sure is hard to pop."
It did pop, of course. And then came the lost decade.
The Dow peaked at 14,164.53 in October 2007, then lost more than half its value after the financial meltdown last fall. At its low point, the average stood at 6,547.05. The breathtaking rally since then brings stocks to roughly break-even for the past 10 years.
On Wednesday, the Dow rose 144.80, or 1.5 percent, to 10,015.86, its biggest gain since Aug. 21 and highest close since Oct. 3 last year.
Broader indexes also climbed to 2009 highs. The Standard & Poor's 500 index rose 18.83, or 1.8 percent, to 1,092.02. The index, the basis of many mutual funds, is up 61.4 percent from a 12-year low in March.
The Nasdaq composite index rose 32.34, or 1.5 percent, to 2,172.23. It's up 71.2 percent since March.
So where does the market go from here?
Some market watchers see 10,000 as an illusion because there are still lingering threats to an economic recovery -- rising unemployment, weak consumer spending and a battered housing market.
The investors who have driven stocks higher since March are the pros: hedge funds and institutions whose furious selling hastened the collapse of the market in the first place.
And red flags are showing up in the technical charts that professional investors use as they make their trading decisions. The Dow sits about 18 percent above its average of the past 200 days.
"The market by all technical indicators is completely overbought, just like back in March it was completely oversold," said Rich Hughes, co-president of Portfolio Management Consultants in Los Angeles.
On the other hand, Wall Street analysts say 10,000 is more than just a number -- it can have legitimate psychological implications.
A recovering stock market soothes the psyche as people watch their portfolios and 401(k) retirement accounts being replenished. And if people start spending again, that may persuade more investors, including some reluctant pros, to go back into the market.
"Psychology plays a huge role in investing, so when you're trying to overcome the huge levels of panic and fear that we've seen over the last year, psychology shouldn't be discounted," said Carl Beck, a partner at Harris Financial Group.
Many investors, especially individuals, are afraid they'll put money into the market only to watch it disappear if stocks plunge again. It's happened before: In 1975, stocks rose 53 percent in less than four months after a recession. Then they lost 11 percent before climbing again in early 1976.
If stocks follow historical patterns, they could be nearing their peak. Assuming the recession technically ended this summer, as many economists believe, the Dow's surge since March puts it near where past rebounds have started to fade.
On top of that, there are still plenty of problems that could trip up the market. Companies posted better-than-expected earnings in the second quarter, but mostly because of cost-cutting, not the sales increases needed to keep growing.
Earnings reports from chip maker Intel Corp. and banker JPMorgan Chase & Co. gave the Dow its final push past 10,000.
JPMorgan, the first major bank to report third-quarter earnings, stoked the market's optimism as it easily beat Wall Street's expectations, reporting a profit of $3.59 billion for the July-September period. The stock, a Dow component, rose $1.50, or 3.3 percent, to $47.16.
Financial stocks have posted the biggest gains since the rally began, but they were also among the most decimated. JPMorgan is up 197 percent and Bank of America Corp. is up 492 percent.
Intel also beat analysts' estimates, reporting a smaller-than-expected drop in profits and sales after the market closed Tuesday. Intel rose 34 cents, or 1.7 percent, to $20.83.
Individual investors remain cautious. In August, well into the rally, they put $11 into bond funds for every dollar they put into stock funds, according to the Investment Company Institute, the mutual fund trade group.
But they appear to slowly be coming back to stocks. Retail brokerage TD Ameritrade reported an average of 431,000 trades a day in August, up from barely more than 300,000 when the market was sliding in January and February.
If the market can hold Wednesday's milestone, investors should grow even more confident.
"It wouldn't surprise me if it made Joe Main Street more comfortable," David Kelson, portfolio manager of Talon Asset Management in Chicago.
Bond prices fell as stocks soared. The yield on the 10-year Treasury note rose to 3.42 percent from 3.35 percent late Tuesday.
Oil jumped $1.03 to settle at $75.18 a barrel on the New York Mercantile Exchange.
The Russell 2000 index of smaller companies rose 12.24, or 2 percent, to 623.94.