The market is seesawing back and forth between gains and losses today as investors take profits but are also still probing for a bottom. While market conditions are still weak, and many analysts anticipate the likelihood of a further drop, many investors are pegging their hopes that the Federal Reserve will step in to support the market and economy with another round of quantitative easing or another form of a stimulus plan. Stocks got a lift today from a report from the U.S. Commerce Department, which said that orders for durable goods rose 4 percent in July. However, the housing market continues to show instability. The Federal Housing Finance Agency said that home prices fell almost 6 percent year-over-year for the second quarter, largely due to foreclosure sales diluting property values. The big news today, however, is the significant retreat in gold and silver prices as investors are taking profits off the table after a failed push for $1,900. Gold prices are currently trading at $1,775, down over 4.5 percent from yesterday’s close. Oil has edged up to $86 a barrel.
Major U.S. Stock Indices
DJIA: 11,142.89 (-0.30 percent)
S&P 500: 1,158.88 (-0.30 percent)
NASDAQ: 2,429.68 (-0.68 percent)
Russell 2000: 679.31 (-0.55 percent)
In other news:
- Toyota (TM) is hoping to show the market its resiliency with an aggressive redesign and launch of its best-selling Camry sedans, and the first of 20 new-look models the automaker plans to release by 2013. [Bloomberg]
- Google (GOOG) agreed to pay $500 million in a settlement with the U.S. Justice Department after allegations that the search company accepted hundreds of millions of dollars from Canadian pharmacy companies advertising to U.S. consumers. [WSJ]
- Is it time to buy troubled banks? Some Wall Street analysts seem to think so now that valuations have come down so much. [CNBC]
- The U.S. debt problems have been well publicized by the media, but could China’s financial obligations actually be worse? [Business Insider]
- Home prices are expected to fall anther 15 percent, which is bad news for investors but great news for aspiring home buyers. [The Street]
Check back for more news.
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