The consensus of an improving housing market has gained more credence as data released this morning shows new home starts increased 6.9% in June from the revised May estimate of 711,000. Right now any growth is good growth, unfortunately the only confirmation out of Ben Bernanke during his two-day testimony is of anemic economic growth and slow progress toward alleviating unemployment. The Fed chairman does not see the United States entering a double-dip recession, but with GDP growth expectations under 2%, the markets cannot take much comfort in the prediction.
Fortunately, the markets are up as investors are encouraged by the string of optimistic earnings reports.
Index |
Gain/Loss |
Gain/Loss % |
---|---|---|
Dow Jones Industrial Average |
73.83 | 0.58% |
S&P 500 | 5.83 | 0.43% |
Nasdaq | 25.27 | 0.87% |
WTI Oil Futures | 0.52 | 0.58% |
Source: Yahoo! Finance.
Earnings continue
Intel
Bank of America
Pharmaceutical companies were expected to release sound numbers this earnings season, but that was not the case with Abbott Laboratories
Long-term outlook
A surprising number of companies are beating estimates so far this quarter, but the unexpected bottom lines are not caused by unanticipated second-quarter growth. The upended numbers are thanks to the extremely low estimates from analysts. Today's good news is not correlated with an improving economy; rather, it shows how negative the economic outlook currently is. With more potential buying opportunities, now would be a great time to check out The Motley Fool's special report: "3 Stocks That Will Help You Retire Rich." This free report will list three remarkable companies as well as offer great advice on how to invest to secure a comfortable retirement. Get your free report now.