Investors to Market: Not Again; Housing Data Disappoints – September 24, 2009

Wall Street Slumps

Any chance of a rally today was quickly halted by investors after the latest read on the housing market was leaner than expected. Stocks took a dive for a second day at the start of the session following news that existing home sales fell to a seasonally adjusted 5.1 million unit rate in August. The annoucement caused many investors to worry that another pullback is just around the corner. The report overshadowed news from the Labor Department that the number of newly laid off workers seeking unemployment benefits fell for a third week in a row. Even the Fed’s upbeat assessment of the economy failed to bring stocks back to positive territory. A pullback on Wall Street has been mostly expected since it has been nearly seven months since stocks hit 12-year lows in early March. In other news, the G-20 summit kicked off in Pittsburg, PA. One of the most pressing issues being discussed is financial reform. Commodities prices extended their losses from the previous session as the dollar gained versus the euro and yen. Bond prices mostly rose. The yield on the benchmark 10-year Treasury note fell to 3.38 percent from 3.43 percent.

Latest Headlines

Sales of previously-owned US homes fell in August after four consecutive monthly increases. Now don’t start screaming that the housing market is headed back in the toilet. A dip in home sales doesn’t necessarily mean that. In other housing news, rates for 30-year home loans were unchanged this week and remain close to record-low levels.

Mortgage Interest Rates: Where Are They Heading?

Video — Signs of a Housing Recovery?

Why Housing’s Recovery Has Reached a Crossroads

The money just keeps pouring in over at Twitter. The fashionable microblogging service is getting close to securing as much as $100 million of new funding from up to seven investors. The $50 million that was supposedly raised last week must have been just a starting point for the company valued at $1B.

The number of Americans filing first-time claims for jobless benefits dropped unexpectedly last week to the lowest in two months. Let’s not forget that the number is still too high, but a drop is always nice.

It seems like every other week another CEO is calling it quits. Aeropostale (ARO) CEO Julian Geiger is the latest one to step down. Geiger has served as the company’s CEO since 1996 and will continue to serve as chairman. The retailer also announced that the role would be taken over by two company executives, but this may end up being a disaster.

Lawry’s has spiced up profits at McCormick & Company Incorporated (MKC). The seasonings and food maker said that its third-quarter profit jumped 10% from last year thanks to price hikes, cost cuts and the acquisition of Lawry’s.

A Perot employee may be headed to Martha Stewart’s old jail cell. A Texas man has been accused by the Securities and Exchange Commission of insider trading after he collected $8.6 million in profits from the planned Dell Inc. (DELL) acquisition of Perot Systems Inc. (PER) that was that was just announced earlier this week. Something seems real fishy!

Rite Aid Corp. (RAD) the third-largest US drugstore chain, has reached a bumpy patch in the road. The company reported a narrower second-quarter loss Thursday but cut its full-year forecast. Shares of the drugstore plunged following the news.

Other Juicy Tidbits

It may be the digital age, but when it comes to pinching pennies, most consumers are opting for a method that is well over 100 years old: the paper coupon.

The Oracle of Omaha loves this company’s bespoke suits so much, he even did a promotional video – and it shows in the shares.

It’s good to be CEO, even in a recession. Especially in a recession. Why do CEOs survive recessions better than others?

Ten years ago, Dow 36,000 was a prediction that many took seriously. After going through 2 crashes, here’s what we can learn about hubris.