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VIDEOMarket Roundup: S&P Gains Nearly 1% as Obama Restores Confidence
By
Nick Gwiazda Sep 08, 2010 4:50 pm
Stocks rose today amid Obama's speech and a positive Consumer Credit Report.
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The Federal Reserve’s Consumer Credit Report showed a $3.63 billion reduction in outstanding credit. Revolving (credit card) debt fell by $4.39 billion, while non-revolving (loan-affiliated) debt increased by $758 million. The Fed’s data prove that liquidity is improving as Americans slowly become less debt-laden.
In related news, the Fed released its Beige Book report, a compilation of general economic and employment data. Key points included slowing or mixed economic growth in major cities, consumer spending increases, and housing sector declines. The report also showed an abundance of qualified job applicants.
The US Labor Department’s report today stated that available jobs increased by 178,000 in July, bringing the grand total to 3.04 million, despite 9.6% unemployment. This data, in conjunction with Beige Book data, could signify the bottom of the US unemployment trough.
Online retailer Amazon (AMZN) has opted to acquire online music retailer Amie Street , a site Amazon has invested in for four years. Unlike iTunes (AAPL), Amie Street prices its songs according to popularity, increasing price as a song’s buzz grows.
BP (BP) released its internal report Wednesday afternoon, citing several equipment failures and employees at fault for the massive Gulf oil spill. A significant factor was the failure of the oil rig’s blowout preventer, which did nothing to stop the oil leak. BP also places part of the blame on cement contractor Halliburton (HAL) and rig owner Transocean (RIG).
In Europe, Ireland has opted to split the troubled Anglo Irish Bank into two parts, creating separate institutions for its “toxic” assets and its healthy ones. Costs for the split could top $35 billion, or 20% of Ireland’s GDP.
Coca-Cola (KO) CEO Gary Fayard was bullish on the company's growth in his Back-to-School conference at Barclay’s Capital on Wednesday. Fayard cited “tremendous opportunity” in the US, of course with more potential in emerging markets like China and India.
No positions in stocks mentioned.
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