Beverly Hills, CA 11/25/2009 1:17:42 AM
Consumer Confidence Reports Damage Stocks
Financial World News Update by Equities Magazine
Stocks recoiled after reaching 13-month highs follow negative reports on consumer confidence, the dictating of the U.S. economy. Additionally reports predicted a slowing of economic growth led people to withdraw from the market. Major indices slipped Tuesday after the Conference Board revealed the Consumer Confidence Index is at 49.5. While better than expected, the nation is still a long haul away from being on solid economic group, typically expressed by a consumer confidence reading of 90 or more. Stocks had been on the decline in morning trading Tuesday after the government revealed a new, lower calculation for third-quarter growth, down to 2.8 percent from the predicted 3.5 percent. This news comes subsequent to a rally on Monday that ended with Dow Jones industrial gaining 133 points to its highest level in over a year. The weakening dollar and positive reports on housing had investors, who paused when the dollar began to stabilize, re-entering the market. On Tuesday, the dollar regained some of the progress it made and investors began to withdraw again. The weakness of the USD has been partly responsible for higher stock prices in the past months, with investors capitalizing on low-interest rates to put money into assets besides cash to yield higher returns. With the end of the year fast approaching though, the dollar and Treasurys are becoming increasingly more appealing to investors seeking a safeguard for the big gains they made throughout the year. For every one stock that rose on the New York Stock Exchange this morning, more than two fell bringing the volume to a 316.3 million shares down from 332.4 million at this time Monday. A report earlier Tuesday showing the fourth straight month of improving house prices in September did little to shore up investor confidence. The Similar to the markets behavior in only the past two days, investors have been doing their best to interpret and keep up with the mixed signals being sent via the media and the market regarding the economic recovery. Sectors like housing have begun to show improvements, indicating the nation is on the up and up but then consumer confidence and employment are improving at an incredibly slow pace, making investors and American’s alike question how quickly the recovery will come. About EQUITIES: Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on the Internet at www.equitiesmagazine.com, as well as select content at http://www.nasdaq.com/. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community. Equities is gearing up for conferences in New York City and Newport Beach, CA. If you’re a company looking to present before our 300 registered investors or an interested investor looking to expand your portfolio contact us at: events@equitiesmagazine.com Sign up for a free one-year subscription to EQUITIES Magazine
