Russell leading the bulls
The Russell 2000 (NYSE: IWM) is the day’s biggest mover as the rally extends into the second half of trading. At 1:22 p.m. the small-cap index had added 23.98 points, or 3.10%, to 798.11. The Dow Jones Industrial Average (INDU) was up 105.27 points, or 0.78%, to 13,609.57.
Stocks were buoyed this morning by news of strong earnings from tech sector heavyweights, and the bulls have remained in charge even after the National Association of Realtors released a mixed forecast of annual U.S. home sales.
Existing-home sales will total 6.04 million in 2007, below the 6.48 million recorded in 2006, the Washington, D.C.-based trade group reported after the start of trading.
“Existing-home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines,” NAR senior economist Lawrence Yun said.
However, Yun said he thinks that mortgage disruptions will hold back sales over the short term.
New-home sales are expected to total 852,000 this year, down from 1.05 million in 2006. The total for 2008 is projected to fall still further, down to 848,000.
Investors don’t seem to mind.
Optimism is still dominant following news before the opening bell that computer-networking equipment maker Cisco Systems Inc. (Nasdaq: CSCO) saw its fiscal fourth-quarter profit increase 25%, while Sprint Nextel Corp. (NYSE: S) reported a year-over year rise in the number of its subscribers and posted a quarterly income that beat analysts’ expectations.
Elsewhere, the price of oil has added about $0.30 to $72.70 following news that U.S. inventories of gasoline stocks fell for the week ended Aug. 3, according to the Energy Information Administration.
