This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Finish June in Fine Fashion

The FTSE in London settled higher by 1.42% and the DAX in Germany finished ahead by 4.33%. The Hong Kong Hang Seng index settled ahead by 2.19% and the Nikkei in Japan closed up 1.5%.

The U.S. Commerce Department reported Friday that personal income rose 0.2% in May, as expected by economists surveyed by Thomson Reuters, and matching April's tiny rise. Spending was essentially unchanged, also as expected, after a downwardly revised increase of 0.1% for April.

The personal saving rate was 3.9% in May, compared with 3.7% in April.

David Ader, a bond strategist with CRT, said that the flat read on spending for May and the downward revision for April points to a soft start to the quarter and will drive down GDP forecasts toward the mid-1% handles.

"Note, too, the rise in the savings rate even as disposable income gains, suggesting that lower gas prices are not generating spending confidence," he said.

In related economic news for Thursday, the final Thomson Reuters/University of Michigan index of consumer sentiment fell to the lowest level of the year at 73.2 in June. Economists, on average, had predicted that the index would decline to 74.1, matching the preliminary figure.

Separately, the Institute for Supply Management-Chicago said that its business barometer increased to 52.9 in June from 52.7 in May, above the read of 52.5 economists surveyed by Thomson Reuters were expecting. A reading above 50 indicates expansion in the regional economy.

A Goldman Sachs report said qualitative comments show that, compared to last month, more industries are reporting a slowdown in activity and or a cautious outlook; on the other hand, comments generally indicate a gradual slowdown as opposed to outright contraction.

"Unsurprisingly, the European crisis and the upcoming U.S. 'fiscal cliff' remain the key risks across sectors, weighing on business outlook and sentiment," the report said. "The housing market remains the one bright spot in the economy, as our homebuilders team continues to report positive trends, consistent with broad increases in recent home sales and house price reports."
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BUD $125.16 0.00%
STZ $155.58 0.00%
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs