Stocks advanced on Wednesday as investors got some much-needed good news on the economy, including a report that showed existing-home sales—and home prices—have started to rise. Mortgage applications fell 3.5 percent, however, as rising mortgage rates depressed refinancing demand. Read and listen to what the experts had to say...
Expect Markets to Rise Another 10%
"The big money isn't in the market," and many investors did not enter the recent rally, said Stefan Muller from F.I.B. “I expect the market to go up another 10 percentand reach really critical chart levels,” he said. “People will go back into the market and that’s why we’ll go up, and we’ll not have that pullback that people want to see.”
Counterpoint: Charts Predict Coming Slump for S&P
The S&P 500 index is due for a pullback and will need to hold above 944 to avoid a drop below 900, said Chris Locke at Oystertrade.com. “We’re going to start to lose upside momentumjust as we enter a weak seasonal period going into October and November,” he said. Locke added that oil is also due for a drop, but gold remains a buy on any dips.
Q3 Real GDP Growth Will Be Over 3%
Fed Chairman Ben Bernanke will be reappointed and that makes sense, said Allen Sinai of Decision Economics. “The chairman and the Fed have come on strong in the latter part of the year and have done a lot of great things to preserve the banking system and the chaos that we were headed into,” he said. Sinai added that real GDP growth will be over 3 percent in the third quarter.
Consumer Saving at an ‘Unprecedented Rate’
According to data, "people are saving at an unprecedented rate," especially in the U.S. where "saving is very rare," said Richard Sparks from Schaeffer's Investment Research. "People are actually hunkering down in order to weather whatever storms are on the horizon."