Economic Data Moves Stocks Back Into Green – August 25, 2009

Back to Green for Stocks

An unexpected boost in consumer confidence led stocks higher on Tuesday. Major stock indices rose moderately in afternoon trading, including the Dow Jones industrials, which added about 30 points. Stock gains were broad based, with 22 of 30 Dow stocks rising. Investors got better-than-expected readings during the session on two of the most problematic parts of the economy: consumers and housing. The markets also reacted positively to President Obama’s nomination of Federal Reserve Chairman Ben Bernanke for a second term. In other news, the White House released its deficit and economic forecast. It predicts a federal budget deficit of $9 trillion over the next decade. U.S. light crude oil for October delivery fell $2.32 to settle at $72.05 after surging to a 10-month high. Treasury prices inched higher, lowering the benchmark 10-year note to 3.45% from 3.47%.

Don’t Carried Away by the Rallies

What’s New on the Street?

Congratulations or condolences for Bernanke? – President Barack Obama nominated Ben Bernanke for a second term as the Federal Reserve Chairman.

Video – Bernanke’s Impact on the Economy

The Case Against Bernanke

Weak Sales Weigh On Staples Profit – Sales are down, but Staples (SPLS) is poised to shred the competition down the road.

The King Crushes It – He might play second fiddle to a clown in the battle of the burger joint mascots, but today the king celebrated after Burger King (BKC) reported an increase in 4th quarter profits.

Cash for Clunkers Filing Time Extended – Dealers across the nation are hard at work trying to get all of the necessary paperwork completed so they can be reimbursed by the government. Now they have until 8 p.m. EST to submit it.

How Not to Supervise a Broker – She was a sales assistant, which is about as low as you can be in a brokerage office. But that did not stop her from stealing $850,000 from Citigroup (C) clients.

Big Lots Earnings Remain Strong – Did anyone believe that Big Lots (BIG) wasn’t going to beat its bogey with its second-quarter earnings? Anybody?

BofA Blames The Lawyers – Bank of America (BAC) is using the old “the lawyers made us do it” excuse.

Snapshot of the Economy

Consumer confidence soars – A key measure of consumer confidence jumped much more than predicted in August.