Stocks ended flat Tuesday as investors took a breather after Monday's blockbuster rally. Bank and airline stocks were among the day's bright spots, while investors sold tech, materials and energy stocks. Pending-home sales jumped 3.6 percent in June, blowing past expectations for a 0.6-percent increase. It was the fifth straight monthly gain and the longest such streak in six years. Read and listen to what the pros had to say...
Rally Based on Better-Than-Expected Results
"The earnings results have been good, said Max King of Investec Asset Management. “So that means that quarterly numbers are better than expected. That means that people are not only upgrading their forecasts for this year and next year, but those forecasts look like there's lower risk."
Making Cash-for-Clunkers Work
We’ve got to work out the "cash-for-clunkers" program, said Morris Reid of BGR Group. “This is one of those rare cases where the private sector, the non-profit sector and the public sector got together and came up with an an idea that actually works,” he said. “This was the highest level this year for auto sales, all the dealers, all the auto employees think it’s a good idea.”
Housing in on Health Care
Nancy-Ann DeParale at the White House Office Of Health Reform said more people will come to support the health care plan when they fully understand it. “We’re going to build on the existing system so that for most people, nothing will change except they will see their costs lower,” she said. “We’re going to end some of the insurance companies’ practices of banning people with preexisting conditions from coming in.”
What’s Happened to Infrastructure?
“It’s hard to get infrastructure money out—particularly the larger projects,” said Stephen Beatty of KPMY Americas. “The stuff that was targeted was short-term fix—the potholes, paint the lines on the roads—that was what was focused and it’s done a pretty good job at getting money out the door in that level.”
Spenders vs. Savers: Opposites Attract?
Studies by Wharton's Scott Rick and Deborah Small and Northwestern's Eli Finkel showed that people who generally spend less than they would ideally like to spend, and those who spend more than they would like to tend to marry each other. According to the paper, "surveys of married adults suggest that opposites attract when it comes to emotional reactions toward spending."
CNBC's Companies in the News:
GE 'Misled' Public on Results, Will Pay $50 Million Fine
(GE is the parent company of CNBC and CNBC.com.)
Novartis CEO's Home Set on Fire; Company Sees Pattern
PepsiCo Strikes Deal to Acquire Two Largest Bottlers
Goldman Employees Told No Big Purchases: Report
Donald Trump Back in Control of Atlantic City Casinos