Nov 19, 2012|
What's Up On Wall Street - Steven Russolillo, WSJ
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
June I know given away a Turkey today but I forgot what -- past worthless twinkie twinkies the last -- -- prime last time equally. The appeal a long time be two -- you get another tweaking and -- -- pay the market's rallying tremendously. Dow up a 150 points NASDAQ up 38 S&P up nineteen oil trading up 122. With a gold up. Sixteen dollars and the tenured US treasuries up. To one point sixty to it in the rally might continue because we just got some economic data -- gonna go to new York and got breaking news on economic data came out at 10 AM. Stephen Russell Wall Street Journal how you're -- I'm doing well thanks Jeremy. Pay two pieces of housing data that I wanted to talk to you about we got existing home sales coming in this morning. Pretty good number but it went -- from what I can say. Yes it was up about two point 1% that is actually -- better than expectations economists were were looking for a -- declines so. A good sign their but then also on top of the -- that the homebuilders confidence index this is basically just looking at. How homebuilders are are feeling about the market and that growth again this -- seventh straight month of increases in this particular index. And it's at the highest level since may 2006. So. You know say what you will about all everything that the Fed has done but Bernanke has neither of the big point in trying to boost housing market and now these numbers are certainly coming off of very low levels and so it's going to take a long time for housing to get back to any sort of normalcy but. You know these numbers continue to get better and better as the months go on so. Certainly good sign there and after that it goes to housing report came out at ten and the market got a little bit of the ball players already up. Big to begin with but it got another extra boost -- housing data. Yeah it would seem to indicate that people are figuring out it's cheaper to buy a house than it is to rent one right any debts they knew it when you crunch the numbers no matter how you do it. -- even if they eliminate the tax deduction associated with a home mortgage is still cheaper to abide and it has to rent. Yeah you know -- Actually I mean I think it also depends on the area that you're in that that's certainly go away when we speak generally I think that's -- great point and. Now with interest rates at record lows and expecting to stay at record those four. Twelve and thirteen -- fourteen -- in between fifteen. Doesn't seem like those. You know nothing's going to change much over the next few years so. That -- giving helping to boost. And that when it was just look at the rest of the market here there's seems to be some sort of optimism that the the booklet does that deals don't your read reached to avert the disc player. And that is that's a topic here that. Certainly something that's been at the forefront -- the last few weeks since Election Day and particularly of President Obama coming out over the weekend saying he's confident the deal get done and you had. Politically leaders on both sides of the -- last week. Basically saying that talks were constructive than. Eight. Basically to hold was certainly more optimistic. That it was if you think back to the debt ceiling debate back in August 11 deal. You know we will see it's certainly it's one of those things where anything goes sour if the talks start getting a little bit more tensions. One would think that there would be. A bit more volatility in the market go forward but for now at least during the Thanksgiving shortened week here. Market. And it really is a short week because you'll have full trading volume today and tomorrow Wednesday's volume will be very light and Friday. They might as well not even open I mean they close it would they close that eleven. It to happen today. Yes yes stock market closed at 1 o'clock 1 o'clock. Right right so -- market closed Thursday happened Friday palm tree behind just in general typically lower during this week -- the entire week. And you know what actually just to note we Israel this morning that. But to market tends to do well during the week the -- averages about a half percent gain during. But Thanksgiving week that's much better just -- just your average typical week so. But with that don't -- -- -- generally pretty volatile because trading behind the world so. And it's it's funny you know he regrets that petty gets to an adult but intimidated out -- winning -- major indexes up more than 1% so. Al-Qaeda. Taken after -- I'm still look at my wounds after last week all right Stephen thanks very much for your time. Stephen Russell joining us today from the Wall Street Journal. You know it's yeah he's off its it it it it's a good day to today it's time to party. I'm departed somebody testing and finally it's at the gas in 34 senate where. We're probably I will go to Medford to buy my gas as -- I told would happen to me under I'm driving home from a hockey game and it was late no gas stations -- to buy gas on 128. The don't do that that's -- here's some financial advice from a financial guy. Do not buy your gasoline on route 128 because you'll -- I paid 390s. And Wellesley students yeah and -- the south that -- you know -- in I was -- Back from the city -- been in -- for game and senate again if I didn't have to pay 397 again I -- yelled at me was you know he could get a lot cheaper. In collateral -- it to go to bat mobile and obviously all the equity lines of credit. Pay I don't know if you saw the story about IQ you love ya gonna do it now as you witnesses. IKEA. Which is where our producer shop for furniture. And my daughter shops there IKEA has long been famous for its inexpensive. Some assembly required furniture on Friday the company admitted that political prisoners. Political prisoners in the former east Germany. Provided some of the labor that helped it keeps its prices so now you know why if you old IKEA furniture. The value -- their prices are low they use prisoners to put together a report. By auditors at Ernst and young concluded that IKEA the -- Swedish company now a Canadian knowingly benefited from. Forced labor in the former east Germany to manufacture some of its products in the 1980s. It was not the new stuff. -- I went around and doing it now you know what I think about it or they're doing it now approach coming out of like Africa Mexico trying to Berlin Wall -- you know. I he had commissioned the report in May as a result of accusations that both political and criminal prisoners were involved in making components of IKEA furniture that some IKEA. Employees knew about getting into about it is that I did debated if this is a -- honestly played like that really needs to be -- event. Two I keep them out of what you but not sit my butt down. On three incher that has assembly required. To expedite its vision you had to assemble. A right so unsettling feeling about the fact that I had to put something to -- and sleeping or sitting. Yes -- He. It we we're going to be joined in the next segment by some deep. Ready from the Wall Street Journal here is what's going on -- and this is where it bodes you know the markets rallying today but there's a big drag on the market here's the number. Half of American companies they they interviewed forty CEOs half of them said you know went. Because of this fiscal -- I'm not spending any money on its economic cash so we're to talk about that the next segment are we headed into order there another recession. So deep ready from the Wall Street -- gonna help us understand that.