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AP: Stocks Surge Before Market Opens

From those eager beavers at the Associated Press:

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Stocks surge on manufacturing, housing data

By Sara Lepro, AP Business Writer

NEW YORK – Stocks are snapping back from Friday’s big losses as stronger-than-expected reports on manufacturing and housing reassure investors’ concerns about how durable the economic recovery is.

Major indexes rose more than 1 percent in early trading Monday, including the Dow Jones industrials, which jumped about 120 points, erasing a chunk of Friday’s 250-point loss.

The gains came after the Institute for Supply Management said the manufacturing industry grew at the fastest pace in October since April 2006. The ISM manufacturing index clocked in at 55.7, much better than the 53 economists had expected. It was the third month in a row the index came in above 50, which indicates growth.

Meanwhile, the National Association of Realtors said pending home sales increased for the eighth straight month in September. The index rose 6.1 percent from August to 110.1. It was the highest reading since December 2006 and more than 21 percent above a year ago. Economists had expected the index would be level at 103.8.

Also Monday, the Commerce Department said construction spending increased 0.8 percent in September, matching the gain in August. Economists had been expecting a 0.3 percent decline.

"This should help relieve some of the fears that the recovery is not sustainable," said Peter Cardillo, chief market economist Avalon Partners Inc. of the reports.

The major indexes had been up modestly prior to the reports, getting a boost from a surprise profit from Ford Motor Co. Ford said deep cost cuts and the government’s Cash for Clunkers rebates helped it earn nearly $1 billion in the third quarter. Shares soared more than 9 percent in early trading.

The Dow Jones industrial average jumped 121.37, or 1.3 percent, to 9,834.10. The Standard & Poor’s 500 index rose 13.16, or 1.3 percent, at 1,049.35, and the Nasdaq composite index rose 16.79, or 0.8 percent, to 2,061.90.

Nearly three stocks rose for every one that fell on the New York Stock Exchange, where volume came to 476.2 million shares, compared with 326 million shares at the same time on Friday…

"The question is, is the trend changing?" said Jim Dunigan, managing executive of investments at PNC Wealth Management. "We’ve been in an up trend here." …

Boy, good news travels fast. At least when it is good news for the Obama administration.

The stock market opens at 9:30 am, EST. The time stamp for this article is 3:49 am.

So this headline and story is posited upon what exactly?

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Granted, this AP article may have been updated.

But even as of 9:30 am EST, this was the way the article looked.

This article was posted by Steve on Monday, November 2nd, 2009. Comments are currently closed.

3 Responses to “AP: Stocks Surge Before Market Opens”

  1. Snardius says:

    They were probably basing their forecast off of the futures pre-market trading.

  2. Petronius says:

    These morning stock market reports are generally meaningless and hold little that is of genuine interest.

    The real news is in the secular trends, which are revealed near the end of the report: “Bond prices fell…. The dollar fell … pushing commodity prices higher. Gold jumped … while oil prices gained….”

    Examine the daily financial reports for the last few months and note that these indicators — bonds, the dollar, commodities, gold, and oil — are apt to be moving in a pattern about the same as they are today (and as quoted above).

    Falling bond prices and a falling dollar confirmed by rising prices for commodities, gold, and oil — these are all indicators that we are entering an era of inflation.

    Inflation is being driven primarily by the massive Federal deficit spending required to support the Democrat Congress and White House programs, and to a lesser extent by the low interest rates currently maintained by the Fed.

    Under conditions of inflation, any economic recovery — or stock market rally — is going to be weak, poor, and brief in duration.

    As inflation begins to percolate through the system, the Fed will have to raise interest rates, choking off economic recovery. Similarly, higher taxes will be imposed to support the Democrat spending programs, dealing a hammer blow to the U.S. economy.

    Hard times are coming. Retirees and seniors living on fixed incomes are going to be especially hurt.

  3. Liberals Demise says:

    AP been staring into dingle”Barrys” crystal balls again?

    If you’re gonna go and print hubris, post the winner of the World Series.
    Yeah, right!

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