Consumer Sentiment Slides on Economic Data; S&P Below 1,700 Again
Continued Fed uncertainty brought down most stocks again on Tuesday along with underwhelming economic reports. Home prices continued to increase in July, but at a rate of 1.8% compared to June's rate of 2.2%. The number of new jobs added in August was a modest gain of 169,000. Slow job growth and higher interest rates have caused consumers to lower their confidence in the US economy. Applied Materials (AMAT) announced plans to buy rival Tokyo Electron Ltd. for $9 billion, creating a new company valued around $29 billion. Both Facebook (FB) and LinkedIn (LNKD) received price-target upgrades on Tuesday and subsequently saw shares rise.After three sessions of losses gold prices are down almost 4%. Moody's warned in a report that the failure of the US government to raise the debt ceiling would damage financial markets and business confidence. Congress has until September 30th to make a budget decision.
Word on the Street
- Consumer confidence in September drops on job and wage worries.
- Home prices continue to rise and recover, but at a slower pace.
- Applied Materials (AMAT) announces deal to buy Tokyo Electron for $9 billion.
- Citigroup (C) stumbles after announcing layoffs in its mortgage business.
- Asian stocks continue to drift lower on US and European monetary policy concerns.
- Is It Time to Put Blackberry (BBRY) Out of Its Misery?
Published on Sep 24, 2013By InvestorGuide Staff