The stock market basically erased yesterday’s losses.
First, the scoreboard:
- Dow: 14,796.5, +137.8, +0.9%
- S&P 500: 1,591.0, +18.3, +1.2%
- NASDAQ: 3,354.7, +36.4, +1.0%
And now, the top stories:
- There was a ton of economic data released today, and all of it was better-than-expected.
- Durable goods orders jumped 3.6% in May, which was much higher than the 3.0% expected by economists. Nondefense orders excluding transportation — a key gauge of business investment — jumped 1.7%, beating expectations for a 0.8% gain.
- According to S&P Case-Shiller, home prices jumped 12.1% year-over-year in April, beating expectations for a 10.6% increase. Month-over-month, prices rose 1.7%, which was the fastest pace on record.
- New home sales climbed 2.1% month-over-month to an annualized rate of 476,000. Economists were looking for a 460,000 unit level.
- Consumer confidence surged to 81.4 in June from 75.1 in May. This was the highest reading since January 2008. “Consumers are considerably more positive about current business and labour market conditions than they were at the beginning of the year,” said Lynn Franco of the Conference Board. “Expectations have also improved considerably over the past several months, suggesting that the pace of growth is unlikely to slow in the short-term, and may even moderately pick up.”
- “This double play – of stronger data and less anxiety about the policy-driven liquidity paradigm – is essential for maintaining market tranquility,” said PIMCO’s Mohamed El-Erian in a post for Business Insider. “The hope is that, having re-priced in a rather disorderly manner, markets can regain their footing. The valid worry is that market tranquility may just invite selling by those that were sidelined in prior trading sessions by both price action and liquidity shortfalls.”
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