Have you heard of cash for clunkers? I am starting a campaign called "Cash for Rundown Homes." With this new government back program, people with homes that are rundown, the government would buy the home from you, give you $15,000 and you could buy a new Arbor Custom Home. Wouldn't that be great!!!
If you are interested in the "Cash for Clunkers" program hit this Link.
PS I doubt the government would ever do this, but it is food for thought.
Friday, July 31, 2009
Tuesday, July 28, 2009
Home price index of 20 cities in 1st monthly rise since 2006
It seems like the good news keeps coming. This is definitely a silver lining. I am excited to be working for Arbor who prepared for bad times during good times and now are preparing for good times during bad times. It looks like good times are around the corner. Read the article below.
By Les Christie, CNNMoney.com staff writer
On Tuesday July 28, 2009, 2:42 pm EDT
The value of U.S. homes grew on a monthly basis in May for the first time in nearly three years, according to 20-city index released Tuesday.
The month-over-month increase was 0.5%, according to the report from financial data company Standard & Poor's and economists Case-Shiller. It was the first increase in the monthly index since July 2006.
On an annual basis, home prices in the 20 cities fell 17.1%, but it was the second straight month that the year-over-year decline lessened.
"This could be an indication that home price declines are finally stabilizing," said David Blitzer, chairman of the index committee S&P, in a prepared statement.
While acknowledging that the report was good news, Mark Zandi, chief economist for Moody's Economy.com, downplayed the importance of a single month's statistics.
"I think it's a temporary respite," he said. "It reflects the recent decline in foreclosure sales, and prices will continue to fall over the next several months."
Robert Shiller, the Yale economist who co-founded the index and who's famous for warning that the housing boom was, in fact, a bubble, said the decrease in foreclosure sales does show up in the index statistics as a plus for home prices. That's one reason he did not want to sound too optimistic; foreclosures could take off again.
"And we could get more economic bad news, but it does look encouraging," he said.
He added that he thought that Washington's efforts have boosted the nation's spirits, an important factor for the housing market.
"The government has done a lot to support the housing market," he said. "Confidence has improved. People are talking about 'green shoots.' People are thinking it's time the recession came to an end. The stock market is up."
Cleveland gains: The improvement in the index was as broad as it was deep, with 13 metro areas showing gains, compared with eight in April. Two, New York and Tampa, Fla., showed no change.
The biggest winner was long-suffering Cleveland, where prices rose 4.1%. The city still falling the most was Las Vegas, where prices declined 2.6%.
The report added to the list of positive housing market indicators. These include rising new home sales, increased home building and increased pending sales.
Paul Bishop, the managing director of research for the National Association of Realtors, was glad to see the upturn but did not want to overemphasize the results of a single month, saying the economy is not out of the woods yet.
"Job losses could continue after the recession ends," he said. "That's where the economy intersects with consumers in the most tangible way. Until consumers have some level of confidence that the economy is improving, many will be reluctant to buy."
Washington's goal: Stabilizing the housing market has been a primary goal of Washington policy makers. Congress has tried to stimulate homebuying by creating a temporary tax credit of $8,000 for people who have not owned a home for at least three years.
The administration has also tried to tackle the foreclosure problem, creating a program to help mortgage borrowers avoid defaulting on their loan payments and losing their homes.
Zandi added that lenders are still figuring out the administration's foreclosure prevention plan, and have suspended the foreclosure process for many borrowers in default. That means fewer distressed properties, which tend to bring in lower prices, than usual.
One of the most positive things the government has done, according to Shiller, was to take control of the failing mortgage companies Fannie Mae and Freddie Mac.
These were government sponsored enterprises that guaranteed a flow of mortgage lending by buying or backing mortgages in the secondary market. Without government backing up these companies, mortgage lending would have dried up, which would have devastated home sales.
Lower prices: Prices have also fallen so far in so many places that it's drawing people back into the market.
In Las Vegas, prices are off about 53% from their peak, set in August 2006. Phoenix prices are down 54%.
Overall, the 20-city index is down more than 32% from its high.
Interest rates were very low in May, which also could have helped the housing market. The rate for a 30-year mortgage was well below 5% during the month, which encouraged buyers and drove up demand.
Zandi is hopeful that the market is stabilizing. "It feels like the cycle is winding down," he said. "I think it depends on how well the mortgage modification plan will work and I'm guessing it will work reasonably well."
One possible scenario, according to Shiller, is that home price declines end and then nothing happens for several years, the "L-shaped" recovery.
"Then, we can stop talking about home prices and get onto more interesting topics," he said
By Les Christie, CNNMoney.com staff writer
On Tuesday July 28, 2009, 2:42 pm EDT
The value of U.S. homes grew on a monthly basis in May for the first time in nearly three years, according to 20-city index released Tuesday.
The month-over-month increase was 0.5%, according to the report from financial data company Standard & Poor's and economists Case-Shiller. It was the first increase in the monthly index since July 2006.
On an annual basis, home prices in the 20 cities fell 17.1%, but it was the second straight month that the year-over-year decline lessened.
"This could be an indication that home price declines are finally stabilizing," said David Blitzer, chairman of the index committee S&P, in a prepared statement.
While acknowledging that the report was good news, Mark Zandi, chief economist for Moody's Economy.com, downplayed the importance of a single month's statistics.
"I think it's a temporary respite," he said. "It reflects the recent decline in foreclosure sales, and prices will continue to fall over the next several months."
Robert Shiller, the Yale economist who co-founded the index and who's famous for warning that the housing boom was, in fact, a bubble, said the decrease in foreclosure sales does show up in the index statistics as a plus for home prices. That's one reason he did not want to sound too optimistic; foreclosures could take off again.
"And we could get more economic bad news, but it does look encouraging," he said.
He added that he thought that Washington's efforts have boosted the nation's spirits, an important factor for the housing market.
"The government has done a lot to support the housing market," he said. "Confidence has improved. People are talking about 'green shoots.' People are thinking it's time the recession came to an end. The stock market is up."
Cleveland gains: The improvement in the index was as broad as it was deep, with 13 metro areas showing gains, compared with eight in April. Two, New York and Tampa, Fla., showed no change.
The biggest winner was long-suffering Cleveland, where prices rose 4.1%. The city still falling the most was Las Vegas, where prices declined 2.6%.
The report added to the list of positive housing market indicators. These include rising new home sales, increased home building and increased pending sales.
Paul Bishop, the managing director of research for the National Association of Realtors, was glad to see the upturn but did not want to overemphasize the results of a single month, saying the economy is not out of the woods yet.
"Job losses could continue after the recession ends," he said. "That's where the economy intersects with consumers in the most tangible way. Until consumers have some level of confidence that the economy is improving, many will be reluctant to buy."
Washington's goal: Stabilizing the housing market has been a primary goal of Washington policy makers. Congress has tried to stimulate homebuying by creating a temporary tax credit of $8,000 for people who have not owned a home for at least three years.
The administration has also tried to tackle the foreclosure problem, creating a program to help mortgage borrowers avoid defaulting on their loan payments and losing their homes.
Zandi added that lenders are still figuring out the administration's foreclosure prevention plan, and have suspended the foreclosure process for many borrowers in default. That means fewer distressed properties, which tend to bring in lower prices, than usual.
One of the most positive things the government has done, according to Shiller, was to take control of the failing mortgage companies Fannie Mae and Freddie Mac.
These were government sponsored enterprises that guaranteed a flow of mortgage lending by buying or backing mortgages in the secondary market. Without government backing up these companies, mortgage lending would have dried up, which would have devastated home sales.
Lower prices: Prices have also fallen so far in so many places that it's drawing people back into the market.
In Las Vegas, prices are off about 53% from their peak, set in August 2006. Phoenix prices are down 54%.
Overall, the 20-city index is down more than 32% from its high.
Interest rates were very low in May, which also could have helped the housing market. The rate for a 30-year mortgage was well below 5% during the month, which encouraged buyers and drove up demand.
Zandi is hopeful that the market is stabilizing. "It feels like the cycle is winding down," he said. "I think it depends on how well the mortgage modification plan will work and I'm guessing it will work reasonably well."
One possible scenario, according to Shiller, is that home price declines end and then nothing happens for several years, the "L-shaped" recovery.
"Then, we can stop talking about home prices and get onto more interesting topics," he said
Thursday, July 23, 2009
Stocks extend gains after home sales report
So my prediction was correct; the DOW hit 9K!!!
NEW YORK (AP) -- The Dow Jones industrials are back above 9,000 for the first time since the beginning of January.
A report Thursday of a jump in home sales eased investors' worries about one of the economy's biggest trouble spots. They responded by buying stocks across the market, lifting the major indexes more than 1.5 percent and sending the Dow up 150 points past 9,000.
A real estate group said sales of previously occupied homes rose 3.6 percent from May to June. It was the third straight monthly increase and fed investors' hopes that the overall economy is strengthening.
A weak housing market and rising unemployment are widely seen as two of the biggest obstacles to a recovery in the economy. The National Association of Realtors said sales came in at 4.89 million last month, above the 4.84 million analysts had been expecting.
Several better-than-expected earnings reports also helped boost investor sentiment. Ford Motor Co. surprised the market with a second-quarter profit of $2.3 billion due mainly to a huge gain for debt reduction, while drug maker Wyeth, cigarette maker Philip Morris International Inc. and candy maker Hershey Co. all raised their profit forecasts for the year.
A report from UPS Inc., however, was more worrisome. The world's largest shipping carrier said its second-quarter profit plunged 49 percent as sales tumbled. The company also issued third-quarter guidance below analysts' forecasts.
Investors were able to look past a government report showing a bigger-than-expected rise in new jobless claims. The Labor Department said the number of new claims for unemployment benefits rose by 30,000 last week to 554,000, slightly above analysts' estimates. However, a Labor Department analyst said the report was distorted by the timing of auto plant shutdowns.
Also, total unemployment benefit rolls fell to the lowest level since mid-April.
After a month of wayward trading, stocks restarted the market's spring rally early last week after companies like Goldman Sachs Group Inc. and Intel Corp. got earnings season off to a good start with solid reports.
"Things are getting much better and the market is pricing it in," said Phil Orlando, chief equity market strategist at Federated Investors.
In midmorning trading, the Dow rose 153.26, or 1.7 percent, to 9,034.52. The blue chips last traded and closed above 9,000 on Jan. 6.
The Standard & Poor's 500 index rose 17.03, or 1.8 percent, to 971.10, while the Nasdaq composite index rose 32.77, or 1.7 percent, to 1,959.15.
- On Thursday July 23, 2009, 10:58 am EDT
Tuesday, July 21, 2009
Rates Stay Low
Continue to check out rates on Wells Fargo's Website.
NEW YORK (Dow Jones)--Treasury prices rallied Tuesday as Federal Reserve Chairman Ben Bernanke reassured investors that key interest rates will stay low for some time in order to help the economy heal.
Gains built on Monday's higher prices, continuing with Treasurys' better tone this week following the prior week's rout. Last week, the 10-year yield pushed up by more than 30 basis points on better-than-expected earnings reports and after some more encouraging bits of economic data. Bond yields move inversely to prices.
Tuesday though, in testimony before the House Financial Services Committee, Bernanke soothed Treasury market investors with word that the federal funds rate will likely remain near zero for an extended period of time, despite recent improvements in the economy. The fed funds rate is currently at a 0%-to-0.25% range.
"Clearly, Treasury investors are focusing on the fact that short rates are going to be low for an extended period," said William O'Donnell, head of U.S. government bond strategy at RBS Securities Inc. in Greenwich, Conn.
Key in Bernanke's remarks was mention of the risk posed by the commercial real estate market, O'Donnell said, word that inflation should be subdued for the next two years and Bernanke's warning that the recent stabilization in consumer spending may not hold.
Remarks "painted about as bullish a picture for Treasurys as you can get," O'Donnell said.
Bernanke did offer a more upbeat assessment of the economy and financial markets, but he said the financial system does remain stressed and the labor market has continued to deteriorate. The jobless rate is already at a 26-year high of 9.5%; the Fed expects it ratchet up even more, ending the year between 9.8% and 10.1%.
Bernanke also offered details on how the Fed will eventually withdraw the massive amount of stimulus it has extended to the economy, steps that were first laid out in an editorial he wrote Tuesday in the Wall Street Journal. He made it clear, though, that at this point, the time is not ripe to put those strategies into play.
The chairman noted that some of the emergency measures put in place during the credit crisis have already begun to wind down, and that process should continue. Paying interest on bank reserves and conducting reverse repurchase agreements to drain liquidity from the system are two other tools that the Fed could eventually employ.
In late trade, intermediate Treasurys were outperforming, also helped by another round of Treasury buying from the Fed.
The seven-year note was 22/32 higher to yield 3.02%, and the 10-year note was up 31/32 at 3.46%. The two-year note was up 3/32, with its yield having fallen back below 1%, to 0.91%.
Tuesday, the Fed bought $7 billion of Treasurys maturing in the next seven to 10 years. The central bank has now bought about $217 billion of the as much as $300 billion it has pledged toward buying Treasurys. At its current pace, it will run though the $300 billion by its next interest-rate-setting meeting at the end of September.
The Treasury market Tuesday was also helped by renewed worries about the fate of business lender CIT Group Inc. (CIT). CIT, a source of funding for thousands of small to medium-sized businesses, said early Tuesday that a $3 billion rescue package from bondholders might not be enough to keep it from seeking bankruptcy protection.
-By Deborah Lynn Blumberg, Dow Jones Newswires; 212-416-2206; deborah.blumberg@dowjones.com
(Min Zeng contributed to this report)
NEW YORK (Dow Jones)--Treasury prices rallied Tuesday as Federal Reserve Chairman Ben Bernanke reassured investors that key interest rates will stay low for some time in order to help the economy heal.
Gains built on Monday's higher prices, continuing with Treasurys' better tone this week following the prior week's rout. Last week, the 10-year yield pushed up by more than 30 basis points on better-than-expected earnings reports and after some more encouraging bits of economic data. Bond yields move inversely to prices.
Tuesday though, in testimony before the House Financial Services Committee, Bernanke soothed Treasury market investors with word that the federal funds rate will likely remain near zero for an extended period of time, despite recent improvements in the economy. The fed funds rate is currently at a 0%-to-0.25% range.
"Clearly, Treasury investors are focusing on the fact that short rates are going to be low for an extended period," said William O'Donnell, head of U.S. government bond strategy at RBS Securities Inc. in Greenwich, Conn.
Key in Bernanke's remarks was mention of the risk posed by the commercial real estate market, O'Donnell said, word that inflation should be subdued for the next two years and Bernanke's warning that the recent stabilization in consumer spending may not hold.
Remarks "painted about as bullish a picture for Treasurys as you can get," O'Donnell said.
Bernanke did offer a more upbeat assessment of the economy and financial markets, but he said the financial system does remain stressed and the labor market has continued to deteriorate. The jobless rate is already at a 26-year high of 9.5%; the Fed expects it ratchet up even more, ending the year between 9.8% and 10.1%.
Bernanke also offered details on how the Fed will eventually withdraw the massive amount of stimulus it has extended to the economy, steps that were first laid out in an editorial he wrote Tuesday in the Wall Street Journal. He made it clear, though, that at this point, the time is not ripe to put those strategies into play.
The chairman noted that some of the emergency measures put in place during the credit crisis have already begun to wind down, and that process should continue. Paying interest on bank reserves and conducting reverse repurchase agreements to drain liquidity from the system are two other tools that the Fed could eventually employ.
In late trade, intermediate Treasurys were outperforming, also helped by another round of Treasury buying from the Fed.
The seven-year note was 22/32 higher to yield 3.02%, and the 10-year note was up 31/32 at 3.46%. The two-year note was up 3/32, with its yield having fallen back below 1%, to 0.91%.
Tuesday, the Fed bought $7 billion of Treasurys maturing in the next seven to 10 years. The central bank has now bought about $217 billion of the as much as $300 billion it has pledged toward buying Treasurys. At its current pace, it will run though the $300 billion by its next interest-rate-setting meeting at the end of September.
The Treasury market Tuesday was also helped by renewed worries about the fate of business lender CIT Group Inc. (CIT). CIT, a source of funding for thousands of small to medium-sized businesses, said early Tuesday that a $3 billion rescue package from bondholders might not be enough to keep it from seeking bankruptcy protection.
-By Deborah Lynn Blumberg, Dow Jones Newswires; 212-416-2206; deborah.blumberg@dowjones.com
(Min Zeng contributed to this report)
Monday, July 20, 2009
Will the DOW Hit 9K?
With the DOW closing at 8848.15 up over 1%, will we hit 9,000 by the end of the week? Some annalists are saying the recession is nearing its end. Only time will tell. Read the article below.
NEW YORK (AP) -- Stocks are rising as investors are reassured by reports that commercial lender CIT Group has a deal with key bondholders that will help it avoid bankruptcy.
Stocks are following world markets higher and extending big gains logged last week after reports in The New York Times and The Wall Street Journal said CIT's board approved a deal with major bondholders to receive $3 billion in emergency funding.
Investors are also focused on the next wave of earnings reports from companies such as Boston Scientific and Texas Instruments.
A string of good earnings news sent market indicators up about 7 percent last week.
The Dow Jones industrials are up 52 to 8,796. The Standard & Poor's 500 index is up 4 to 945, and the Nasdaq composite index is up 6 to 1,893.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) -- Stock futures rose Monday as investors were reassured by reports that commercial lender CIT Group has a deal with key bondholders that will help it avoid bankruptcy.
U.S. futures followed world markets higher after reports in The New York Times and The Wall Street Journal said CIT's board approved a deal late Sunday with major bondholders to receive $3 billion in emergency funding. Both the Times and the Journal cited people familiar with the matter. CIT representatives could not immediately be reached for comment.
The money will give the troubled company time to restructure and pay down billions of dollars in debt due later this year.
CIT's future was cast in doubt after negotiations with federal regulators for bailout funds fell through. Its failure would have been a big blow to investor confidence and would have hurt industries like retailing, which has suppliers who reply on CIT for financing.
Investors are also focused on the next wave of earnings reports coming this week. On Monday, companies such as Boston Scientific Corp. and Texas Instruments Inc. are set to issue results.
A string of good earnings news sent market indicators up about 7 percent last week, giving the Dow Jones industrials and the Standard & Poor's 500 index their biggest weekly gains since early March, when the market's spring rally began.
The huge advance came after a monthlong slide in stocks that was driven by reports showing the economy was not healing as quickly as hoped. But solid earnings and outlooks from companies like Goldman Sachs Group Inc., Intel Corp. and International Business Machines Corp. gave investors hope that the recession is coming to an end.
Ahead of the market's open, Dow Jones industrial average futures rose 36, or 0.4 percent, to 8,733. Standard & Poor's 500 index futures rose 5.10, or 0.5 percent, to 942.00, while Nasdaq 100 index futures rose 2.50, or 0.2 percent, to 1,530.00.
Among the earnings news Monday, toy maker Hasbro Inc. said its second-quarter profit rose 5 percent, beating expectations, as strong U.S. revenue offset international sales hurt by the stronger dollar. Shares rose more than 3 percent, adding 87 cents to $26.25 in premarket trading.
Meanwhile, oilfield services company Halliburton Co. said its second-quarter profit tumbled 48 percent amid sluggish exploration and production activity. But results were better than analysts forecast and its shares rose 77 cents, or 3.6 percent, to $22.15.
Auto parts and building products maker Johnson Controls Inc.'s fiscal third-quarter earnings dropped 63 percent but exceeded expectations. Its revenue, however, fell short of analysts' estimates. Ahead of the market's open, shares added 87 cents, or 4 percent, to $22.39.
With the bulk of earnings reports still to come, the market has yet to hear from some key industries including retailing. If those results are disappointing, it could force investors to rethink their most recent rally. And the market still has a number of issues to deal with, including record-high unemployment and a damaged housing market.
"I would look for a little follow-through early this week that will hinge on quarterlies, but longer-term I think we'll see some pressure come back into this market," said Darin Newsom, senior analyst at DTN. "We're still going to have to see better employment and housing numbers."
On Monday, though, the CIT news and optimism over better earnings reports stoked investors' appetite for risk. Investors moved out of safe-haven assets like U.S. Treasurys and the dollar, and into riskier bets like commodities.
Oil prices jumped $1.12 to $64.68 in electronic trading on the New York Mercantile Exchange. Prices for gold, silver and copper also rose.
Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.67 percent from 3.66 percent late Friday.
And the dollar fell against other major currencies.
Except for a private sector group's report on economic activity, there is little economic data on tap for Monday. Economists are expecting the Conference Board's index of leading economic indicators to have risen 0.4 percent in June, which would mark the third straight monthly advance. The report is to be released at 10 a.m. EDT.
Overseas, Hong Kong's Hang Seng index jumped 3.7 percent. In afternoon trading, Britain's FTSE 100 was up 1.4 percent, Germany's DAX index rose 1.4 percent, and France's CAC-40 gained 1.5 percent. Japanese financial markets were closed for a holiday.
By Sara Lepro, AP Business Writer
On Monday July 20, 2009, 9:38 am EDT
NEW YORK (AP) -- Stocks are rising as investors are reassured by reports that commercial lender CIT Group has a deal with key bondholders that will help it avoid bankruptcy.
Stocks are following world markets higher and extending big gains logged last week after reports in The New York Times and The Wall Street Journal said CIT's board approved a deal with major bondholders to receive $3 billion in emergency funding.
Investors are also focused on the next wave of earnings reports from companies such as Boston Scientific and Texas Instruments.
A string of good earnings news sent market indicators up about 7 percent last week.
The Dow Jones industrials are up 52 to 8,796. The Standard & Poor's 500 index is up 4 to 945, and the Nasdaq composite index is up 6 to 1,893.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) -- Stock futures rose Monday as investors were reassured by reports that commercial lender CIT Group has a deal with key bondholders that will help it avoid bankruptcy.
U.S. futures followed world markets higher after reports in The New York Times and The Wall Street Journal said CIT's board approved a deal late Sunday with major bondholders to receive $3 billion in emergency funding. Both the Times and the Journal cited people familiar with the matter. CIT representatives could not immediately be reached for comment.
The money will give the troubled company time to restructure and pay down billions of dollars in debt due later this year.
CIT's future was cast in doubt after negotiations with federal regulators for bailout funds fell through. Its failure would have been a big blow to investor confidence and would have hurt industries like retailing, which has suppliers who reply on CIT for financing.
Investors are also focused on the next wave of earnings reports coming this week. On Monday, companies such as Boston Scientific Corp. and Texas Instruments Inc. are set to issue results.
A string of good earnings news sent market indicators up about 7 percent last week, giving the Dow Jones industrials and the Standard & Poor's 500 index their biggest weekly gains since early March, when the market's spring rally began.
The huge advance came after a monthlong slide in stocks that was driven by reports showing the economy was not healing as quickly as hoped. But solid earnings and outlooks from companies like Goldman Sachs Group Inc., Intel Corp. and International Business Machines Corp. gave investors hope that the recession is coming to an end.
Ahead of the market's open, Dow Jones industrial average futures rose 36, or 0.4 percent, to 8,733. Standard & Poor's 500 index futures rose 5.10, or 0.5 percent, to 942.00, while Nasdaq 100 index futures rose 2.50, or 0.2 percent, to 1,530.00.
Among the earnings news Monday, toy maker Hasbro Inc. said its second-quarter profit rose 5 percent, beating expectations, as strong U.S. revenue offset international sales hurt by the stronger dollar. Shares rose more than 3 percent, adding 87 cents to $26.25 in premarket trading.
Meanwhile, oilfield services company Halliburton Co. said its second-quarter profit tumbled 48 percent amid sluggish exploration and production activity. But results were better than analysts forecast and its shares rose 77 cents, or 3.6 percent, to $22.15.
Auto parts and building products maker Johnson Controls Inc.'s fiscal third-quarter earnings dropped 63 percent but exceeded expectations. Its revenue, however, fell short of analysts' estimates. Ahead of the market's open, shares added 87 cents, or 4 percent, to $22.39.
With the bulk of earnings reports still to come, the market has yet to hear from some key industries including retailing. If those results are disappointing, it could force investors to rethink their most recent rally. And the market still has a number of issues to deal with, including record-high unemployment and a damaged housing market.
"I would look for a little follow-through early this week that will hinge on quarterlies, but longer-term I think we'll see some pressure come back into this market," said Darin Newsom, senior analyst at DTN. "We're still going to have to see better employment and housing numbers."
On Monday, though, the CIT news and optimism over better earnings reports stoked investors' appetite for risk. Investors moved out of safe-haven assets like U.S. Treasurys and the dollar, and into riskier bets like commodities.
Oil prices jumped $1.12 to $64.68 in electronic trading on the New York Mercantile Exchange. Prices for gold, silver and copper also rose.
Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.67 percent from 3.66 percent late Friday.
And the dollar fell against other major currencies.
Except for a private sector group's report on economic activity, there is little economic data on tap for Monday. Economists are expecting the Conference Board's index of leading economic indicators to have risen 0.4 percent in June, which would mark the third straight monthly advance. The report is to be released at 10 a.m. EDT.
Overseas, Hong Kong's Hang Seng index jumped 3.7 percent. In afternoon trading, Britain's FTSE 100 was up 1.4 percent, Germany's DAX index rose 1.4 percent, and France's CAC-40 gained 1.5 percent. Japanese financial markets were closed for a holiday.
By Sara Lepro, AP Business Writer
On Monday July 20, 2009, 9:38 am EDT
Wednesday, July 15, 2009
Strong results at Intel pull stocks sharply higher
NEW YORK (AP) -- Investors are betting on the economy again.
Strong earnings and an upbeat forecast from Intel Corp. pulled investors into the stock market Wednesday as hopes grew that the economy could be starting to recover. The chip maker's results signal that computer sales are picking up faster than had been expected.
That welcome sign for the economy was enough to draw out buyers after a month of little direction in the stock market. Major stock indicators jumped more than 2 percent, including the Dow Jones industrial average, which rose 180 points.
Investors also latched onto a report showing that industrial companies cut production far less in June than they had in previous months. The Federal Reserve said output at the nation's factories, mines and utilities slipped 0.4 percent last month after sliding 1.2 percent in May.
John Lekas, senior portfolio manager at Leader Capital in Portland, Ore., said Intel's second-quarter results and third-quarter forecast are giving investors a sign that the economy could be gathering strength.
"This is the first step toward recovery," he said. Lekas cautions, however, that a rebound will likely be slow.
Even a slow recovery was good news for investors who have been worried in the past month that a strong stock market rally earlier this spring was based on too optimistic a view about a quick economic comeback.
In midday trading, the Dow rose 183.72, or 2.2 percent, to 8,543.21. The Standard & Poor's 500 index rose 20.24, or 2.2 percent, to 926.08, while the tech-heavy Nasdaq composite index gained 49.34, or 2.7 percent, to 1,849.07.
More than eight stocks rose for every one that fell on the New York Stock Exchange, where volume came to 421.3 million shares, compared with 360.2 million traded at the same point Tuesday.
Stocks also surged overseas after Intel's strong results came out. In afternoon trading, Britain's FTSE 100 jumped 2.6 percent, Germany's DAX index rose 3.1 percent, and France's CAC-40 gained 2.9 percent. Hong Kong's Hang Seng index gained 2.1 percent.
A report showing higher than expected consumer price inflation in June did little to affect stock prices but it did send bond prices lower for a third straight day.
The Labor Department's Consumer Price Index rose 0.7 percent last month as gasoline prices surged. It was the fastest increase in 11 months and slightly worse than economists' projections of 0.6 percent. The bond market is highly sensitive to signs of inflation, which erodes the value of a bond's fixed returns over time.
The renewed surge in stock prices also robbed Treasurys of some of their safe-haven appeal as investors became more willing to take on risk. Bonds also fell on Tuesday after a report showing sharper-than-expected wholesale price inflation in June.
The 10-year Treasury note, a widely used benchmark for mortgages and other loans, fell 24/32 point, pushing its yield up to 3.57 percent from 3.47 percent late Tuesday.
Intel's upbeat report followed strong earnings earlier Tuesday from Goldman Sachs Group Inc. Goldman kicked off earnings in the banking industry by easily topping analysts' earnings predictions. The Wall Street banking giant said it earned $2.72 billion, after paying preferred dividends, only two quarters after posting a steep loss during the peak of the credit crisis.
Investors will now set their sights on three other major banks -- JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. -- reporting second-quarter results later in the week to see if the broader sector is actually recovering from the malaise that beset the sector late last year.
JPMorgan Chase, Bank of America and Citigroup all have strong retail banking operations, unlike Goldman, that could pose problems as loan defaults continue to rise. Moderation in loan defaults could be a sign the economy is strengthening as customers are better able to repay loans.
Investors are getting a fresh round of earnings reports Wednesday.
Abbott Laboratories, a drug and medical-device company Abbott Laboratories said its profit fell 3 percent, but earnings met expectations. The stock fell $1.43, or 3.1 percent, to $45.06.
American Airlines parent AMR Corp. reported a smaller loss than analysts expected, sending its own shares and those of other airlines higher. AMR rose 8 cents, or 1.9 percent, to $4.26.
The dollar fell, and gold prices rose. Light, sweet crude rose $1.31 to $60.83 per barrel on the New York Mercantile Exchange.
Commodities stocks gained as the dollar weakened and commodity prices rose.
In other trading, the Russell 2000 index of smaller companies rose 14.01, or 2.8 percent, to 510.53.
By Stephen Bernard, AP Business Writer On Wednesday July 15, 2009, 12:18 pm EDT
Strong earnings and an upbeat forecast from Intel Corp. pulled investors into the stock market Wednesday as hopes grew that the economy could be starting to recover. The chip maker's results signal that computer sales are picking up faster than had been expected.
That welcome sign for the economy was enough to draw out buyers after a month of little direction in the stock market. Major stock indicators jumped more than 2 percent, including the Dow Jones industrial average, which rose 180 points.
Investors also latched onto a report showing that industrial companies cut production far less in June than they had in previous months. The Federal Reserve said output at the nation's factories, mines and utilities slipped 0.4 percent last month after sliding 1.2 percent in May.
John Lekas, senior portfolio manager at Leader Capital in Portland, Ore., said Intel's second-quarter results and third-quarter forecast are giving investors a sign that the economy could be gathering strength.
"This is the first step toward recovery," he said. Lekas cautions, however, that a rebound will likely be slow.
Even a slow recovery was good news for investors who have been worried in the past month that a strong stock market rally earlier this spring was based on too optimistic a view about a quick economic comeback.
In midday trading, the Dow rose 183.72, or 2.2 percent, to 8,543.21. The Standard & Poor's 500 index rose 20.24, or 2.2 percent, to 926.08, while the tech-heavy Nasdaq composite index gained 49.34, or 2.7 percent, to 1,849.07.
More than eight stocks rose for every one that fell on the New York Stock Exchange, where volume came to 421.3 million shares, compared with 360.2 million traded at the same point Tuesday.
Stocks also surged overseas after Intel's strong results came out. In afternoon trading, Britain's FTSE 100 jumped 2.6 percent, Germany's DAX index rose 3.1 percent, and France's CAC-40 gained 2.9 percent. Hong Kong's Hang Seng index gained 2.1 percent.
A report showing higher than expected consumer price inflation in June did little to affect stock prices but it did send bond prices lower for a third straight day.
The Labor Department's Consumer Price Index rose 0.7 percent last month as gasoline prices surged. It was the fastest increase in 11 months and slightly worse than economists' projections of 0.6 percent. The bond market is highly sensitive to signs of inflation, which erodes the value of a bond's fixed returns over time.
The renewed surge in stock prices also robbed Treasurys of some of their safe-haven appeal as investors became more willing to take on risk. Bonds also fell on Tuesday after a report showing sharper-than-expected wholesale price inflation in June.
The 10-year Treasury note, a widely used benchmark for mortgages and other loans, fell 24/32 point, pushing its yield up to 3.57 percent from 3.47 percent late Tuesday.
Intel's upbeat report followed strong earnings earlier Tuesday from Goldman Sachs Group Inc. Goldman kicked off earnings in the banking industry by easily topping analysts' earnings predictions. The Wall Street banking giant said it earned $2.72 billion, after paying preferred dividends, only two quarters after posting a steep loss during the peak of the credit crisis.
Investors will now set their sights on three other major banks -- JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. -- reporting second-quarter results later in the week to see if the broader sector is actually recovering from the malaise that beset the sector late last year.
JPMorgan Chase, Bank of America and Citigroup all have strong retail banking operations, unlike Goldman, that could pose problems as loan defaults continue to rise. Moderation in loan defaults could be a sign the economy is strengthening as customers are better able to repay loans.
Investors are getting a fresh round of earnings reports Wednesday.
Abbott Laboratories, a drug and medical-device company Abbott Laboratories said its profit fell 3 percent, but earnings met expectations. The stock fell $1.43, or 3.1 percent, to $45.06.
American Airlines parent AMR Corp. reported a smaller loss than analysts expected, sending its own shares and those of other airlines higher. AMR rose 8 cents, or 1.9 percent, to $4.26.
The dollar fell, and gold prices rose. Light, sweet crude rose $1.31 to $60.83 per barrel on the New York Mercantile Exchange.
Commodities stocks gained as the dollar weakened and commodity prices rose.
In other trading, the Russell 2000 index of smaller companies rose 14.01, or 2.8 percent, to 510.53.
By Stephen Bernard, AP Business Writer On Wednesday July 15, 2009, 12:18 pm EDT
Saturday, July 11, 2009
Link to the $8,000 Tax Credit
I am sure that we all have heard many things about the $8,000 tax credit and how it works. It amazes me how many people do not know exactly how it works. Hit this LINK and take 7 minutes to listen, you will be able to coach your CPA after you hear it. Also, I have all the forms to file. Email me and I can get them to you!
Wednesday, July 8, 2009
163 Oxford Floor Plan
Below you find video of home site 163. This home is beautiful overlooking the wetlands. Take a look and let me know what you think.
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