Market Roundup: Markets Up For Week on Consumer Confidence and a Reduction in Oil Production

Economy/Stock Market

The indices traded lower on Monday with many Healthcare stocks leading the downswing on a variety of economic news. New home sales decreased in August. Newly constructed home sales dipped 7.6% to an annual rate of 609,000 units, versus July’s upwardly revised addition of 659,000 units. Sales exceeded consensus expectations of 595,000. The markets rallied on Tuesday with Technology brands leading the way up amid the release of favorable consumer sentiment data. The Conference Board Consumer Confidence Index added 2.3 points to 104.1 in September, a level not seen since August 2007. The result far exceeded an expected reading of 98.8, and was up from 101.8 in August. Stocks rallied alongside a lift in crude oil on Wednesday. West Texas Intermediate crude tacked on 4.52% to settle at $46.69 a barrel. Following a three-day energy meeting in Algeria, the Organization of Petroleum Exporting Countries (OPEC) agreed to reduce oil production to 32.5 million barrels a day in November. Stocks sold off on Thursday, trading lower on a variety of economic news. Gross Domestic Product levels ticked up in the second quarter as the Bureau of Economic Analysis’ third estimate showed real GDP increased 1.4%, slightly above the prior two quarters and prior estimates. Consumer spending tacked on 4.3% over the quarter. Additionally, initial jobless claims climbed with Labor Department figures showing new claims rose by 3,000 to 254,000, while continuing claims decreased by 46,000 to 2.062 million in the week ended September 17. Technology and Financial stocks stepped up on Friday. West Texas Intermediate crude oil also rose, adding 0.29% to settle at $47.97 a barrel. The University of Michigan’s Consumer Sentiment Index hit 91.2 this month versus expectations of a 90 reading. In other items, U.S. personal income increased slightly in August, matching estimates. Bureau of Economic Analysis data showed incomes rose 0.2% last month, versus July’s 0.4% gain.