Will the Retail and Pending Home Sales Make the Holidays Shine Bright for the Dow?

Filed in Uncategorized by on December 2, 2010 0 Comments

December starts with bright, shiny economic news. Black Friday, Small Business Saturday and Cyber Monday may have worked some magic and retail sales are up over last year. The holiday glow is brightening pending home sales also, according to the Wall Street Journal.

Some of the highlights from this report: the European Central Bank is taking steps that are easing euro and assisting some of the governments that are financially distressed.

Perhaps the market is no longer fearing Wikileaks, because Bank of America rose 2.8%.  Another financial services company, J. P. Morgan, rose 2.4%. Along with other components, these two helped lift the Dow Jones Industrial Average (DJIA) up 92 points.

Nasdaq and Standard and Poor’s rose along with the DJIA. They rose 0.95 and 1% respectively.

A big thank-you is due to all the shoppers who shrugged off the economic gloom of late November, and took advantage of retailers’ promotions. Because of your efforts, retails stores that were open more than one year enjoyed a 6% increase in sales.

Let’s give another big thank-you to all those heroic house-hunters. The National Association of Realtors’ reported the pending-home-sales index shot up 10.4%.

At the end of a rocky year, it’s satisfying to see some signs of a brightening economic picture. Do you think the good times will continue, or is this recent rally just a blip?

Photo by manuere at www.morguefile.com

 

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