Mid-Day Recap: Stock Markets Continue Climb
Consumer confidence is improving and home prices are actually increasing, leading markets to push higher on Tuesday as investors feel more confident that the economy could experience a broad-based rebound.
At the 3-hour mark in today’s session, the Dow is trading 1.04% higher at 9,607, while the S&P 500 is up 1.01% at 1,035, followed by a 1.00% gain in the Nasdaq to 2,038. Since a 2009 low on March 10, the S&P has seen a rapid 51% climb.
The day’s optimism began half an hour before the open when the S&P Case-Shiller index said home prices had moved upwards by 1.4% in June, following an unexpected 0.5% increase in May.
With 18 of the 20 metropolitan areas advancing, the annual decline was -15.4%, in contrast to expectations of a -16.5% figure. The record decline was back in January when the annual drop was -19.2%.
“The year-on-year declines are still gruesome,” said Patrick Newport from IHS Global Insight. “However, these declines are misleading. They reflect price declines that happened months ago. Recently, prices have turned around.”
Any skepticism that the data was merely a blip was tempered when, an hour later, the Federal Housing Finance Agency also reported that prices had moderated in June. The FFHA Home Price Index said prices were down 5% since last year, compared with -5.6% in May.
The trend is what matters here â€
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