Daily Data Flow: Debt Vote Raises Stocks; Remodeling’s Rise; Euro Crisis Impacts Forecasts »
Debt Vote, Tech Rally Raise U.S. Stocks (Bloomberg)
Technology stocks’ earnings beat their forecasts, and lawmakers temporarily suspended the federal debt limit. As a result, U.S. stocks rose and benchmark indices hit five-year highs. “The recent theme seems to be early weakness overcome by afternoon buying,” Ryan Larson, the Chicago-based head of U.S. equity trading at RBC Global Asset Management (U.S.) Inc., said. “Earnings continue to be in focus while the House votes on extending the debt ceiling.”
Housing Recovery Triggers Remodeling (CNBC)
As the housing market begins to show signs of life, more U.S. homeowners are remodeling and repairing their property. “It had been quite dismal for most remodeling contractors,” said Tom O’Grady, president of O’Grady Builders, based in Drexel Hill, Pa. “I had gone two years without doing a significant home addition. Very few inquiries even. And now I’ve got two. That tells me it’s coming back.”
Euro Crisis Causes International Monetary Fund to Cut World Growth Forecast (CNBC)
According to the International Monetary Fund, worldwide growth this year will be lower than previous estimates, due to the large risk Europe’s sovereign debt crisis poses to the global economy. “The near-term outlook for the euro area has been revised downward, even though progress in national adjustment and a strengthened EU-wide policy response to the euro area crisis reduced tail risks and improved financial conditions for sovereigns in the periphery,” the IMF said in its report.