Good news about the economy is often few and far between, but there are definite signs that we are on the upswing. Stephen Bernard of the AP gives some specific examples in Stocks rally as retail sales rebound and dollar falls, published in USA TODAY this morning.
In the article he states retail sales rebounded more than anticipated for the month of October and commodity prices are higher due to a weaker dollar causing investors to be more optimistic about the state of the economy.
According to the article, "major stock indexes rose more than 1% to 13-month highs, including the Dow Hones industrial average, which jumped more than 135 points." In addition, The Standard & Poor's 500 index jumped above 1,110 after staying at about 1,100 for the past month.
Retail sales also showed improvement: sales rose 1.4% in October despite economists estimating a mere 0.8% increase. This improvement comes after a 2.3% drop in September. The increase is due in large part to auto sales.
Additionally, the weaker dollar increased prices of commodities, such as crude oil, and lifted gold to a new high, which helped shares of energy and materials companies, according to the article.
In another article in the Washington Post, GM reports $1.2B 3Q loss, says it shows progress, GM states that despite posting a loss, the automaker is healthier than perceived because it will begin repaying its debt next month, which is years earlier than anticipated or required.
So, the economy is on the mend just in time for the holiday season. As far as Douglas Homes goes, we have seen an increase in prospects and have sold several houses in our Clarks Meadow development in the past two months--a sure sign the housing market is turning!
(Picture from http://joshcowman.wordpress.com/ from Google Images)
Are there any glaring signs of improvement you have noticed? We would love to hear from you!
Best,
Douglas Homes
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