Stocks rise as US home construction rebounds

[Omaha Steve]

Source: AP-EXCITE

By STEVE ROTHWELL

NEW YORK (AP) — U.S. stock markets rose in early trading Tuesday following reports that showed home construction rebounded in July and inflation remained subdued.

Aeropostale, a teen-clothing company, surged after reinstating its former CEO. Home Depot climbed after raising its annual profit guidance following a strong spring selling season.

KEEPING SCORE: The Standard & Poor's 500 index rose five points, or 0.3 percent, to 1,977 points, as of 10:10 a.m. Eastern. The Dow Jones industrial average climbed 48 points, or 0.3 percent, to 16,884. The Nasdaq composite gained 11 points, or 0.3 percent to 4,519.

HOME HELP: A survey showed sentiment among U.S. home builders improved in August for a third month. Mizuho Bank analysts said in a note to clients that housing is "experiencing a broad-based revival."

FULL story at link.



FILE - This July 15, 2013 file photo shows the New York Stock Exchange in New York. Global stock markets rose Tuesday, Aug. 19, 2014, on improved U.S. housing sentiment and news of diplomatic efforts to broker a cease-fire in Ukraine. (AP Photo/Mark Lennihan, File)


Read more: http://apnews.excite.com/article/20140819/financial-markets-3c6bb7c630.html

[newthinking]

1. I am afraid that this is just the "bubble" cycle moving to the next area

This seems to happen with each cycle: The stock market moves first, then when it is topped out funds move to housing. The bubbles will move though the speculative markets until things pop and we are back in another recession. Parts of Europe are already in recession.