New home price gains data adds to enthusiasm
San Francisco, CA -- (SBWIRE) -- 10/09/2012 -- Thanks to optimism resulting from improved domestic manufacturing and home price gains data, U.S. stock market futures increased Tuesday.
A report on U.S. home prices in August indicated the biggest year-over-year hike in more than six years at 4.6 %. Private real estate data provider CoreLogic also said prices were up 0.3 % in August from July, the sixth consecutive month of price gains.
Many in the know say the data - along with other positive measures of the housing market, including increases in the number of home sales and builder confidence - indicates a true housing rebound.
CoreLogic’s data arrived one day after an Institute for Supply Management survey showed manufacturing is also improving. ISM’s primary index climbed above 50, signaling growth. The index had remained below 50 from June through August.
All the positive news had a direct effect on Wall Street, where Dow Jones industrial average futures added 35 points to 13,472, Standard & Poor’s 500 futures climbed 6.1 points to 1,443, and Nasdaq 100 futures increased 11.2 points to 2,799.5.
The ripple effect continued with international stocks beginning the month relatively high based on investors’ hope that the U.S. is in true recovery mode.
Europe’s FTSE 100 index added 0.19 % at 5,831.50, Germany’s Dax climbed 0.3 % to 7,349 and France’s CAC-40 was up 0.16 % at 3,440.
Despite nearly universal worry that the country will seek a financial bailout, and concern that Germany will refuse, Spain’s Ibex gained 1.15 % to 7,873.50.
Investors continue to keep a close watch on Greece, where inspectors have yet to sign off on the country’s latest austerity measures. If inspectors do not sign off, Greece may lose its bailout funds and eventually exit from the euro. Asian trading was largely uneventful with markets in China, Hong Kong and India closed for public holidays. Japan’s Kikkei 225 index closed 0.1 % lower at 8,786.05.
In other parts of the world, Australia’s S&P/ASX 200 climbed 1 % to 4,433 after the country’s central bank reduced its benchmark interest rate.
U.S. stocks to monitor include automakers General Motors Co. and Ford Motor Co., both of which are expected to report continued gains for the month. Ford shares added 8 cents to $10.01 in premarket trading.
Despite news that New York’s attorney general filed a lawsuit against JPMorgan Chase & Co. alleging that investment bank Bear Stearns - prior to its sale to JPMorgan four years ago - conducted massive fraud in deals involving billions of dollars in residential mortgage-backed securities, JPMorgan shares climbed 13 cents to $41.40 in early trading.
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