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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Stocks rally in last hour, Dow turns positive for June

UPDATED at 4:14 p.m.:

Well, how about that. A last-hour rally instead of a sell-off.

After an up-and-down day, stocks got a little frisky in the last hour of trading of the week, as traders perhaps decided the retail sales numbers weren't all that bad and maybe consumers know something, after all.

The Dow closed up four-tenths of 1 percent at 10,211.07. This was the first winning week for the Dow in a month, following the terrible month of May, the worst May in 40 years for the Dow. Eleven of the Dow's 30 components finished in the red. The Dow is now up seven-tenths of 1 percent for June, but still down 2 percent for the year.

The broader S&P 500 closed up four-tenths of 1 percent at 1,091.60.

The tech-heavy Nasdaq closed up 1.2 percent at 2,243.60.

Oil closed off about 1.6 percent to settle at less than $75 per barrel. Gold picked up less than 1 percent to close just under $1,228 per ounce.

Higher consumer confidence spurs stocks

11:03 a.m.: Consumer confidence jumped by its biggest amount since January 2008, helping stocks pare their early losses.

The Reuters/University of Michigan gauge of early June consumer confidence came in at an index number of 75.5, much better than the 74.5 forecast by economists, in data released moments ago.

In response, stocks rose and are making a bid to turn positive across the board.

The Dow is still down three-tenths of 1 percent but is well off its low of the day.

The broader S&P 500 likewise has been rising, though it is still down three-tenths of 1 percent. The S&P is on track for its best week in a month.

The tech-heavy Nasdaq has turned positive, up two-tenths of 1 percent.

Color me puzzled on this. After the worst May for stocks in 40 years, I thought consumer confidence would take a step back. But consumers are evidently seeing better conditions around them than they see on Wall Street.

In the data, consumers' estimate of both their current conditions and the conditions they expect in six months rose.

Stocks down at opening

9:50 a.m.: Wall Street is trading down at opening, responding to some disappointing May retail sales headlines. We will see whether traders and investors dig a little deeper into the report today and start buying instead of selling.

Stocks also will respond to the early take on June consumer confidence, which is due out shortly. Forecasters expect a slight uptick in confidence, but frankly, following the terrible stock market performance in May, that would surprise me.

In early trading, the Dow is down seven-tenths of 1 percent.

The broader S&P 500 is down six-tenths of 1 percent.

The tech-heavy Nasdaq is down four-tenths of 1 percent.

By Frank Ahrens  |  June 11, 2010; 4:14 PM ET
Categories:  Wall Street  
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Comments

What? Retail sales fell after everyone spent their tax refunds? Shocker. The stock market's been up down and side to side and people are leary? Shocker. Maybe we need some better forecasters.

Posted by: NovaMike | June 11, 2010 10:41 AM | Report abuse

Retail, let me see, I saw this coming years before our Government would ever admit that Americans are not shopping. I have not bought a car since 1992. I sold my home in 2004. I have not been in Mall for the last 15 years. I shop at the half off name brand clotes, or thrift mart for clothes. I don't shop at Wal Mart, Target, Cosco, Sams, no fast food chains. No resteraunts. I cook from scratch. I do my crocery shopping at the Navy Base because its 30 percent cheaper than even wal mart. I never go to movies any more. I never go to shell, texaco, chevron, Phillips, BP, Mobile gas stations. I look on internet each time I need to buy gas an find the cheapest gas in town. I am frugal shopper an my husband appreciates that about me. The Greed in this country caused this knee jerk reactions that Americans put a screaching hault on purchases of any kind.

Posted by: JWTX | June 11, 2010 11:15 AM | Report abuse

Have you figured out yet Mr. Ahrens why employment was only up 431,000 while temporary census workers added 411,000 and "existential" birth/death zombies of 215,000 were also added by the DOL?

But what's a 195,000 discrepancy among incompetent and sycophantic business journalists! By the way, the consumer confidence number has as much value as Bush's assurances about WMD!

Posted by: dgward44 | June 11, 2010 11:37 AM | Report abuse

Well the census workers boosting employement was going to happen anyway...every ten yeats. That is neither good nor bad.

True, tax refund season provided folks with some spending cash. However, there are day to day economic issues that are having a heavy effect now.

The world has been rocked during April/May by an icelandic volcano that basically eliminated all air transport and airfright in Europe for an extended period. Several Europen countries release catastrophic economic news. We also cannot forget about the recent coal mine disaster and massive gulf oil spill.

Still, many of us homeowners use late Spring and Summer to repair and improve out castles. My family is spending a lot on materials and labor ... it seems to be an annual ritual. As I look around, many of my neighbors are doing the same...a lot of money is being spent.

If Americans are to make intelligent financial decisions, they must weigh the good news with the bad. Some folks are so angry (name your "reason") that they only recognize bad news...and some actually look for it.

I question the motives and loyalty of those who consistently align themselves against America's economic recovery.

TGIF

Posted by: free-donny | June 11, 2010 2:27 PM | Report abuse

HILARIOUS!

Posted by: wcmillionairre | June 11, 2010 2:57 PM | Report abuse

You *really* need to fix your "header", which makes it look like GDP declined by 3.2% in Q1 of 2010. Maybe it's trying to say that GDP growth declined from Q4 2009, but visually, the way it's laid out now, it implies that the economy is still in recession.

Posted by: bucky_katt | June 11, 2010 6:30 PM | Report abuse

Listen Up:

The economy will not improve until obama is gone and the conservatives are in control of congress again.

Business is what the economy is all about. Blowing more of the taxpayer's money on fake "stimulus" is only scaring entrepreneurs into "not" expanding. Promising tax increases and more entitlements makes business owners retract activity.

Until the anti-business OBAMA admistration and the anti-business democrat controlled congress is gone, don't expect the economy to improve.

If you know the government will take more if you earn more, why earn more?

The government is the ENEMY.

GET IT, GOT IT, GOOD?

Posted by: twotimetuna1 | June 15, 2010 8:03 AM | Report abuse

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