Another Dow Record close. 12,125.16

[Calabrio]

Remarkably, no one I've spoken to during the past few days had any idea that the Dow Jones crossed the 12,000, and that it closed at a new high of 12,125.16

You'd think a story like this might generate a little more attention a few weeks before an election. Gas prices also fell nationally this weekend too. I that seems to have fallen under the radar too.....


Dow Hits New High on Earnings Optimism
Oct 23 5:44 PM US/Eastern
By JOE BEL BRUNO
AP Business Writer

NEW YORK


Wall Street extended its October rally Monday as investors grew more confident about upcoming earnings reports and as a decline in oil bolstered hopes for higher consumer spending. The Dow Jones industrials crossed 12,100 for the first time and reached a new record high close.

Dow component Wal-Mart Stores Inc., which pleased investors by announcing plans to cut capital spending to improve profits, helped the blue chips to their new high. The Dow's record came just three trading days after its first move past 12,000.

Strength from International Business Machines Corp., Hasbro Inc., and Xerox Corp. also fed the advance. Just halfway through the third- quarter earnings season, companies' generally upbeat reports have given investors a renewed sense of security about the future.

"The blue chips have absolutely outperformed most markets, and this was an extension of that trend," said Steven Goldman, chief market strategist at Weeden & Co. "I don't think things are overdone. Investors are looking ahead thinking an economic slowdown is forthcoming, and its safer to get into household names and not new companies."

Blue chips resumed a three-month rally Monday after stalling Friday; the Dow had already risen 233 points in October before Monday's trading. The average also reached a new trading high Monday of 12,125.16.

The Dow Jones industrial average rose 114.54, or 0.95 percent, to 12,116.91.

With investors favoring blue chips, analysts appeared satisfied that the market wasn't getting ahead of itself. The advance in the broader market was still narrow, and Goldman said he expects any future selloffs will be restrained to under a few percent.

The Standard & Poor's 500 index rose 8.42, or 0.62 percent, to 1,377.02, and the Nasdaq composite index rose 13.26, or 0.57 percent, to 2,355.56.

Monday's gains came despite some concerns about the Federal Reserve's two-day meeting on interest rates, which starts Tuesday. Policymakers are expected to leave interest rates unchanged, though they could sound a hawkish tone in their accompanying economic assessment because of recent signs of rising inflation.

Treasury bonds fell on speculation the Fed will keep its benchmark rate at 5.25 percent, which is still at its highest level in more than five years. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.83 percent form 4.79 percent on Friday.

The dollar was mixed against other major currencies, while gold prices fell.

The price of oil, which fell to lows for the year Friday from its mid- July highs, is making investors more bullish on sectors like retail, which will benefit if consumers have more spending money. Doubts that OPEC members would follow Saudi Arabia's lead to curb output pushed a barrel of light sweet crude lower by 52 cents to $58.81 on the New York Mercantile Exchange.

"The picture being painted is pretty easy to suggest that the pressure on the economy from higher oil prices is easing," said Richard E. Cripps, chief market strategist at Stifel Nicolaus.

Wal-Mart, the world's largest retailer, said it will be more selective about where it will open stores, though it still plans 600 new locations next year. The retailer, which has been pushed by Wall Street to be more prudent in its expansion, was the Dow's biggest advancing stock.

The company said in a meeting with investors that it plans to bring costs in line with a slowdown in its sales and earnings growth. The move is expected to boost return on investment, and sent shares up $1.91, or 3.9 percent, to $51.28.

IBM was the Dow's second-biggest advancer. The technology company filed two patent infringement lawsuits against online retailer Amazon.com Inc. over technologies used to run Internet services.

Big Blue rose $1.08 to $91.56, while Amazon added 31 cents to $32.88.

AT&T Inc. rose 27 cents to $34.71 after reporting third-quarter profit rose 74 percent to exceed Wall Street projections. The telecommunications company said its quarter was boosted by strong growth at its Cingular Wireless unit.

Ford Motor Co. fell 11 cents to $7.90 after posting its largest quarterly loss in more than a decade. The troubled automaker's took a massive charge during the period to cover a restructuring plan that will shutter 16 plants and cut as many as 45,000 jobs.

Hasbro Inc. rose $2.03, or 8.7 percent, to $25.33 after the toy maker reported an 8.2 percent increase in its third-quarter profit amid strong sales of brands such as Playskool. Meanwhile, Xerox Corp. rose 47 cents, or 3 percent, to $16.47 after its third-quarter profit beat analysts' expectations.

Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where consolidated volume came to 2.47 billion shares, compared with 2.57 billion Friday.

The Russell 2000 index of smaller companies rose 1.39, or 0.18 percent, to 763.52.

Overseas, Japan's Nikkei stock average closed up 0.82 percent. Britain's FTSE 100 closed up 0.18 percent, Germany's DAX index rose 0.65 percent, and France's CAC-40 advanced 0.68 percent.

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[Redwingvksm]

Ask that here in Michigan, and they'll tell you that 99% of them are cooking the books.

And I'd agree.

 

[Calabrio]

Ask that here in Michigan, and they'll tell you that 99% of them are cooking the books.

And I'd agree.

You're saying the entire market strength is based on 99 out of 100 companies lying to their share holders?

And you'd base this on what?

The economy consists of more than just Ford Motor Company.

Nor do you address the lack of attention this story seems to be getting. I guess the press can't possibly print good news about the economy, especially so close to an election.

 

[MAC1]

Ask that here in Michigan, and they'll tell you that 99% of them are cooking the books.

And I'd agree.

That's what was happening during the Clinton 90s. In 2001, it all came to an end when Enron collapsed. The prosperity of the 90s was ostensibly based on an artificially driven economy where often grossly exaggerated company profits and projections spurred economic growth, including job creation.

However, at this point there is no evidence to suggest the current stock market’s artificially driven. Rather, President Bush’s tax cuts have spurred economic growth. Most agree with this except for radical liberals like Nancy Polosi who believe taxes need to be increased to pay for a socialistic agenda.

 

[Calabrio]

Also important to note, the Bush Justice Department, especially under Ashcroft, ambitiously prosecuted white collar crime.

 

[fossten]

I'm not putting any stock in anything that comes from Michigan. Any state that has to advertise in order to get businesses to move there has very little credibility with me.

 

[Redwingvksm]

...The economy consists of more than just Ford Motor Company...

Exactly. Because the big 3 are having some problems - lets blame that on Michigan having the worst unemployment rate? I don't think so. (yes, we out-rank Alaska and Hawaii)

The lack of attention? So if it hits one point higher that's another record. The stock market it meant to go up and continually break new records. There would be more coverage if it hit a 5- or so year low.

 

[MonsterMark]

The lack of attention? So if it hits one point higher that's another record. The stock market it meant to go up and continually break new records. There would be more coverage if it hit a 5- or so year low.

Oh really??? If a Dem were in office, it would be front page news day in and day out and be hailed as the greatest economy in the history of the world.:Bang

 

[MAC1]

Oh really??? If a Dem were in office, it would be front page news day in and day out and be hailed as the greatest economy in the history of the world.:Bang

And, to my recollection, that's what was happening during the Clinton 90s. The media was more than happy to report the good news. However, not only was a lot of the good news based on corporate shenanigans similar to that which facilitated the crash of the Stock Market in 1929, but also, by the time 2000 rolled around the feeding frenzy was over and, as a consequence, the economy was facing a recession.

Now, during the Bush administration economic news is even better with respect to a number of important economic indicators (including a 4.8% unemployment rate (the best in 40 years), and record tax revenue), with no signs of an artificially driven economy. Nevertheless, the mainstream media consistently focuses on negative stories, including Iraq, Foley, etc. While these are legitimate stories its clear, however, that the mainstream media is no friend of President Bush.

 

[MonsterMark]

While these are legitimate stories its clear, however, that the mainstream media is no friend of President Bush.

The DBM (Drive-By-Media) is no friend of success. They want a bad economy. They need a bad economy. Hell, what they fear is people waking up and saying, you know what, the economy is pretty good and Bush must be doing a pretty damn good job with the economy.

Record Tax receipts while LOWERING tax rates.
Lowest unemployment in 50 years.
Low Inflation
Low energy costs
Record stock market

If they reported any of this truthfully, the Dems would never stand a chance at the polls and they know it. They DBM is the main reason we are headed for a civil war in this country.

 

[JohnnyBz00LS]

http://www.foxnews.com/story/0,2933,225447,00.html?sPage=fnc.business/realestate

New Home Prices Drop By Most in 35 Years, Even As Sales Rebound
Thursday, October 26, 2006

WASHINGTON — The median price of a new home plunged in September by the largest amount in more than 35 years, even as the pace of sales rebounded for a second month.

The Commerce Department reported that the median price for a new home sold in September was $217,100, a drop of 9.7 percent from September 2005. It was the lowest median price for a new home since September 2004 and the sharpest year-over-year decline since December 1970. The weakness in new home prices was even sharper than a 2.5 percent fall in the price of existing homes last month, which had been the biggest drop on record.

The price decline for new homes came while the sales pace picked up, rising by 5.3 percent to a seasonally adjusted annual rate 1.075 million homes. It marked the second consecutive increase in sales following three months of declines.

The declines in prices served to underscore the severity of the correction in the once-booming housing market, which had seen sales of both new and existing homes soar to record levels for five consecutive years, propelled by the lowest mortgage rates in more than four decades.

Durable Goods Orders Soar, Pushed By Aircraft Demand Federal Reserve Holds Interest Rates Steady, Citing Cooling Economy Economists Expect Federal Reserve to Announce Extended Hold on Interest Rates Federal Reserve Expected to Hold Interest Rates Steady Chain Store Sales Dip This year, with mortgage rates rising through midsummer, sales have cooled considerably, with housing expected to trim more than a percentage point from overall growth in the last half of the year.

The debate is whether the slowdown will be enough to push the country into an outright recession. The Federal Reserve, recognizing the weakness in housing, halted a two-year string of interest rate increases in August and left rates unchanged for a third straight meeting on Wednesday.

The Fed, however, gave no indication that it planned to start cutting rates because of the weakness in housing, saying it was still concerned that inflation remained too high.

The 5.3 percent rise in new home sales in September followed a 3.8 percent rise in August and was the biggest one-month gain since an 8 percent increase in March. However, sales had fallen for three straight months from May through July.

The rise in sales last month was led by a 23.9 percent jump in the West. Sales were also up 6.9 percent in the South. However, sales fell by 34.5 percent in the Northeast and were down 6.3 percent in the Midwest.

 

[JohnnyBz00LS]

Not everything about the economy is rosy.......

http://www.foxnews.com/story/0,2933,224881,00.html?sPage=fnc.business/realestate

Existing Home Prices Post Record Drop, Sales Slip
Wednesday, October 25, 2006

WASHINGTON — Sales of existing homes fell for a sixth straight month in September and the median sales price dropped on an annual basis by the largest amount on record, further documenting a lukewarm housing market.

The National Association of Realtors reported that the median price of a single-family home fell to $219,800 last month, a drop of 2.5 percent from the price in September 2005. That was the biggest year-over-year price decline in records going back nearly four decades.

Sales of previously owned homes fell by 1.9 percent in September to a seasonally adjusted sales pace of 6.18 million units, the slowest sales rate since January 2004.

The median price of a single-family home fell to $219,800 last month, a drop of 2.5 percent from the price in September 2005. That was the biggest year-over-year price decline in records going back nearly four decades.

Housing, which had set sales records for both new and existing homes for five consecutive years, has been rapidly loosing altitude this year, as consumers were battered by rising mortgage rates, soaring energy prices and a slowing economy.

However, economists with the Realtors said they believed the housing decline could be hitting bottom.

"The worst is behind us as far as a market correction — this is likely the trough for sales," said David Lereah, the Realtors' chief economist. "When consumers recognize that home sales are stabilizing, we'll see the buyers who've been on the sidelines get back into the market."

However, analysts said that the weakness in housing could last for several more months with a real upturn in sales not occurring until next spring.

Sales were down in all sections of the country except the South, which posted a small 0.4 percent decline. Sales fell the most in the Northeast, a drop of 3.7 percent, followed by the West, where sales were down 3.1 percent, and the Midwest, where sales fell by 2.8 percent.

The inventory of unsold homes, after climbing to all-time highs, fell for a second straight month, decreasing 2.4 percent, to 3.75 million unsold homes at the end of September, which represents a 7.3 months supply at the September sales pace.

Sales of single-family homes dropped by 1.6 percent to an annual rate of 5.42 million units while sales of condominiums fell by 3.2 percent to an annual rate of 763,000 units.

The 2.5 percent drop in the price of single-family homes pushed them down to $219,800 while condominium prices fell by 3.2 percent to a median price which was also $219,800.

 

[Calabrio]

So, Johnny, would you like to see home sales continue to increase as they have been for the past year? Do we need to explain how markets work to you?

Or would you just use that situation to complain that housing prices were "too high" and that middle income families were being squeezed out of the market?

I'm glad the prices are leveling off and the market is returning to equilibrium.

 

[fossten]

http://www.foxnews.com/story/0,2933,224881,00.html?sPage=fnc.business/realestate

Existing Home Prices Post Record Drop, Sales Slip
Wednesday, October 25, 2006

WASHINGTON — Sales of existing homes fell for a sixth straight month in September and the median sales price dropped on an annual basis by the largest amount on record, further documenting a lukewarm housing market.

The National Association of Realtors reported that the median price of a single-family home fell to $219,800 last month, a drop of 2.5 percent from the price in September 2005. That was the biggest year-over-year price decline in records going back nearly four decades.

Sales of previously owned homes fell by 1.9 percent in September to a seasonally adjusted sales pace of 6.18 million units, the slowest sales rate since January 2004.

The median price of a single-family home fell to $219,800 last month, a drop of 2.5 percent from the price in September 2005. That was the biggest year-over-year price decline in records going back nearly four decades.

Housing, which had set sales records for both new and existing homes for five consecutive years, has been rapidly loosing altitude this year, as consumers were battered by rising mortgage rates, soaring energy prices and a slowing economy.

However, economists with the Realtors said they believed the housing decline could be hitting bottom.

"The worst is behind us as far as a market correction — this is likely the trough for sales," said David Lereah, the Realtors' chief economist. "When consumers recognize that home sales are stabilizing, we'll see the buyers who've been on the sidelines get back into the market." [sounds like good news to me]

However, analysts said that the weakness in housing could last for several more months with a real upturn in sales not occurring until next spring.

Sales were down in all sections of the country except the South, which posted a small 0.4 percent decline. Sales fell the most in the Northeast, a drop of 3.7 percent, followed by the West, where sales were down 3.1 percent, and the Midwest, where sales fell by 2.8 percent.

The inventory of unsold homes, after climbing to all-time highs, fell for a second straight month, decreasing 2.4 percent, to 3.75 million unsold homes at the end of September, which represents a 7.3 months supply at the September sales pace.

Sales of single-family homes dropped by 1.6 percent to an annual rate of 5.42 million units while sales of condominiums fell by 3.2 percent to an annual rate of 763,000 units.

The 2.5 percent drop in the price of single-family homes pushed them down to $219,800 while condominium prices fell by 3.2 percent to a median price which was also $219,800.

Johnny exposes himself (no Clinton pun intended) as an economic ignoramus once again.

Please explain to me, O prognosticator, why a drop in housing prices might not be a good thing for those who are wishing to purchase a house? Is that not good news for them? And then when they start purchasing houses due to a drop in prices, the market will go back up, right? And then it will correct itself YET AGAIN, like it's done for decades, right?

What a maroon.

-- Bugs Bunny

 

[JohnnyBz00LS]

So, Johnny, would you like to see home sales continue to increase as they have been for the past year? Do we need to explain how markets work to you?

Or would you just use that situation to complain that housing prices were "too high" and that middle income families were being squeezed out of the market?

I'm glad the prices are leveling off and the market is returning to equilibrium.

My point in posting these articles is to point out, that despite all the noisy shrill from the RWWs that this is the BEST FRIGGIN' ECONOMY IN 50 MILLION YEARS, that HOME PRICES, which ARE an idication of economic health, SUCKS right now. I agree with you that I'm somewhat glad (from a soon to be buyer's perspective) that prices have "readjusted" to levels closer to reality (vs their previously over-inflated prices). However, I'm also disapointed (from a soon to be seller's perspective) that prices have dipped so drastically in such a short amount of time. I'm just glad I'm not trying to sell right now.

Just keeping it "fair and balanced", in contrast to this outright LIE:

Lowest unemployment in 50 years.

 

[Calabrio]

My point in posting these articles is to point out, that despite all the noisy shrill from the RWWs that this is the BEST FRIGGIN' ECONOMY IN 50 MILLION YEARS, that HOME PRICES, which ARE an idication of economic health, SUCKS right now.

First of all, home prices don't "suck" right now. They are in the process of correcting themself in some markets. To expect 35% appreciation annually forever is insane.

In 2001, I passed on a buying a house for $85,000. Last week, it sold. $248,000. That hardly seems like a crappy market to me. A 300% return on investment in just 5 years, that seems pretty good t me.

Doom and gloom. Since the first day of the Bush administration, we've heard absolutely NO positive economic stories in the press. Every single one was forecasting collapse. And when it didn't come, they talk about more doubt.

So how is it? How can you continue to say the economy is about to tank without having every acknowledging that it was strong and soaring before it? So, Johnny, are you ready to admit that the economy has been strong- and that you just expect it to get worse in the future. Or do you just want to argue something other than economics, because it's not working out well for you.

I agree with you that I'm somewhat glad (from a soon to be buyer's perspective) that prices have "readjusted" to levels closer to reality (vs their previously over-inflated prices). However, I'm also disapointed (from a soon to be seller's perspective) that prices have dipped so drastically in such a short amount of time. I'm just glad I'm not trying to sell right now.

Supply and Demand.

When the supply is low, prices increase.
As the prices increase, motivated by profit, the supply is increased. Prices then fall.
An equilibrium is eventually reached.

The prices were way to high, as a result scores of houses hit the market to cash in. On each street, I'd see four houses for sale. Down the road, dozens of new communities were in construction. Competition because of the abundant supply pushes prices downward.

And not, we haven't seen anything resembling a housing crash. We're seeing a correction of about 10%, depending on your market. This is following about 2-300% increases, depending on market.

But, the "Sky-is-falling, blame Bush" media won't ever report it honestly.
And they also won't note that home ownership continues to be at an all time high, and home sales have continued to climb, just at a lower rate than in months past.

Just keeping it "fair and balanced", in contrast to this outright LIE:

No, you want to distort the reality. If you wanted fair and balanced, you'd talk about how strong the economy has been for the past few years, the positive benefits of the across the board tax cuts, you'd note the invisible hand and the supply/demand curve, ect... Instead, you've taken one "indicator" out of context and are trying to say that because a 2 bedroom home isn't going to appreciate at 35% a year any more, the economy is going to tank.

No, you don't want fair and balanced, you just want a negative counter balance.

 

[JohnnyBz00LS]

In 2001, I passed on a buying a house for $85,000. Last week, it sold. $248,000. That hardly seems like a crappy market to me. A 300% return on investment in just 5 years, that seems pretty good t me.

Yes, let's talk about one instance in a HOT market over the peak period.

FYI, for the majority of Americans, their home is their greatest investment. Therefore the value of that investment is of great concern to the majority of Americans (regardless if you are buying or selling). I wish I could find the chart that was in the paper the other day, but it showed the median home price over the last 10- or so years. It was making steady progress until the last month or so, when it experienced the "sharpest year-over-year decline since December 1970". If you don't think that should raise the eyebrows of concern among the American home owner, you are dilusional.

Here's another issue that is never talked about amongst the GOP. Wage increases vs. inflation. The majority of Americans live paycheck-to-paycheck, and the thing that concerns them most is "how far will the next paycheck take me"?? The attached chart shows how well wage increases have been keeping pace with inflation. Since December 2003, wage increases have fallen behind inflation, where prior to this time, wage increases have outpaced inflation. This explains why the majority of Americans feel that the current "BuSh economy" still sucks. You can't blame that on the MSM.

 

[JohnnyBz00LS]

<crickets>

That's what I thought, all you right-wingged panseys spent all your energy today bashing some vet who can't deliver a punch line properly instead of confronting THESE HARD FACTS that show that for the Average Joe American, the BuSh ECONOMY STILL SUCKS, DESPITE ALL THE TWISTED, DISTORTED, CHERRY-PICKED "STATISTICS" SPOUTED BY THE GOP.

Instead of facing facts and discussing IMPORTANT issues, 'yall would rather hide behind some "smear story" that's an easy target. Spineless Bitches!

*owned*

 

[TheDude]

<crickets>

That's what I thought, all you right-wingged panseys spent all your energy today bashing some vet who can't deliver a punch line properly instead of confronting THESE HARD FACTS that show that for the Average Joe American, the BuSh ECONOMY STILL SUCKS, DESPITE ALL THE TWISTED, DISTORTED, CHERRY-PICKED "STATISTICS" SPOUTED BY THE GOP.

Instead of facing facts and discussing IMPORTANT issues, 'yall would rather hide behind some "smear story" that's an easy target. Spineless Bitches!

*owned*

But Johnny, Kerry hates our troops...