This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Stocks Sell Off, Finish Near Lows

"Consumers were more positive in their assessment of current conditions, in particular the job market, and considerably more optimistic about the short-term outlook for business conditions, employment and their financial situation," Lynn Franco, director of economic indicators at The Conference Board said in a press release. "Despite continuing economic uncertainty, consumers are slightly more optimistic than they have been in several months."

"Thanks to the continued rally in equity prices, the Conference Board measure of U.S. consumer confidence shot up to a seven-month high," said Amna Asaf, an economist at Capital Economics.

Asaf further noted that the decline in the balance of households saying that jobs are hard to find compared with those saying that jobs are plentiful suggests that there is scope for the unemployment rate to fall slightly.

At the same time, the economist cautioned that while the sharp rebound is overall very encouraging, it remains at a relatively depressed level compared with the historical average of 92.3, suggesting that consumption growth is likely to be a little better in the third quarter, "but hardly spectacular."

Wall Street was also parsing more evidence of the housing market recovery as the S&P/Case-Shiller 20-city home price index showed an annual return of 1.2% in July, marking the fastest pace of annual home price appreciation since August 2010 and beating the consensus of 1% and prior return of 0.6%.

"The tone and broad-based strength of this report are quite encouraging as they suggest that the housing market is continuing to sustain the recovery even at a time when the pace of jobs growth has remained weak," said Millan Mulraine, an economic strategist at TD Securities.

The read on the composite index was followed by the Federal Housing Finance Agency House Price Index, which showed that U.S. house prices rose 0.2% on a seasonally adjusted basis in July from June, after a downwardly-revised 0.6% increase.

In Berlin, European Central Bank President Mario Draghi and German Chancellor Angela Merkel met and talked about the creation of an independent European banking sector watchdog and next month's European Union summit, and agreed that there needs to be more willingness at both the individual state level and within the euro zone as a whole to carry out reforms; after which Draghi defended the ECB's latest bond-buying program.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CCL $47.12 0.00%
TSLA $185.00 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs