Stock Market News for June 29, 2011 - Market News
29 June 2011 - 7:06PM
Zacks
Markets moved significantly ahead on Tuesday, buoyed by optimism
that the Greek debt-crisis was nearing a solution and positive
economic data that suggested a surge in home prices for the first
time in eight months.
However, volumes remained tight, reflecting the underlying cautious
stance of investors.
The Dow Jones Industrial
(DJIA) zoomed past the psychological level of 12, 000 as it
recorded its biggest gains in two months. The Dow gained 145 points
or 1.2% to settle at 12188.69. The Standard & Poor 500 (S&P
500) surged 1.3% to finish at 1296.67. The Nasdaq Composite index
was up to 2729.31, after gaining 1.5%. The fear-gauge CBOE
Volatility Index settled at 19.23. On the New York Stock Exchange,
AMEX and Nasdaq, consolidated volumes remained low with just 5.91
billion shares traded.
Optimism about Greece’s
$111.3 billion austerity plan getting a green signal from the
country’s lawmakers buoyed the broader markets, negating the
violent protests that have broken out in the nation. The austerity
plan, which awaits the first of the two votes on Wednesday, is a
significant prerequisite for Greece to receive the loan. The
International Monetary Fund and European Union have strictly
maintained that in order to receive the bailout package, Greece
would have to adhere to the austerity measures.
Wednesday’s vote will be
followed by another vote on Thursday that will decide upon
implementation measures. Investors also cheered reports of France
agreeing to extend the maturity period of Greek bonds and German
bankers agreeing to roll over roughly $10 billion in Greek
government debt.
On the domestic front,
economic data from The S&P/Case-Shiller Home Price Indices
further added to the cheer after the 10- and 20-City composites
showed increases for the first time in eight months. The
S&P/Case-Shiller 20-city index of national home prices
suggested a 0.7% jump in April on a seasonally adjusted basis. The
index had dropped 3.6% in March. The S&P/Case-Shiller 10-city
index also registered an increase, jumping 0.8% in April. Housing
data had rattled the markets on most occasions since last month,
but this time the index helped in lifting market sentiment. Stocks
that gained in the sector included KB Home (NYSE:KBH), PulteGroup,
Inc. (NYSE:PHM), Comstock Homebuilding Companies Inc.
(NASDAQ:CHCI), M/I Homes, Inc. (NYSE:MHO) and DR Horton Inc.
(NYSE:DHI), rising by 1.1%, 2.7%, 3.1%, 3.3% and 1.0%,
respectively.
However, a report from the
Conference Board failed to suggest any positives as the Consumer
Confidence Index declined yet again in June after falling last
month. The report stated: “The Index now stands at 58.5 (1985=100),
down from 61.7 in May. The Present Situation Index decreased to
37.6 from 39.3. The Expectations Index declined to 72.4 from 76.7
last month”.
Commenting on the index, Lynn
Franco, Director of The Conference Board Consumer Research Center,
said: “This month’s decline in consumer confidence was driven by a
less favorable assessment of current conditions and continued
pessimism about the short-term outlook. Consumers rated both
current business and labor market conditions less favorably than in
May, and fewer consumers than last month foresee conditions
improving over the next six months. Inflation fears eased
considerably in June, but concerns about income prospects
increased”.
The energy sector was on
course for heavy gains and the Energy Select Sector SPDR (XLE) fund
surged 2.9%. Crude rebounded from the previous session’s four-month
low and recorded its biggest one-day gain since May 18 as August
crude-oil futures contract jumped $2.28, or 2.5%, to $92.89 per
barrel. Among the gainers were Exxon Mobil Corporation (NYSE:XOM),
Chevron Corp. (NYSE:CVX), Total SA (NYSE:TOT), Marathon Oil
Corporation (NYSE:MRO) and ConocoPhillips (NYSE:COP) and they
increased by 2.2%, 1.5%, 1.6%, 4.7% and 2.1%, respectively.
COMSTOCK HMBLDG (CHCI): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
D R HORTON INC (DHI): Free Stock Analysis Report
KB HOME (KBH): Free Stock Analysis Report
M/I HOMES INC (MHO): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis Report
PULTE GROUP ONC (PHM): Free Stock Analysis Report
TOTAL FINA SA (TOT): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
Zacks Investment Research
Comstock Holding Companies (NASDAQ:CHCI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Comstock Holding Companies (NASDAQ:CHCI)
Historical Stock Chart
From Sep 2023 to Sep 2024