Stocks Rebound Amid European Debt Crisis and Economic Data

Strategic Insights -

Stocks have made a comeback in the US market as trading volatility continues, driven by new economic data and the evolving European debt crisis. Treasury Secretary Timothy Geithner highlighted the need for European leaders to take more decisive action to address sovereign debt issues in the eurozone. The US economy showed mixed results, with a decline in fuel costs offsetting an increase in food prices, according to the latest economic data.

Key Takeaways:

  • The US wholesale price index remained unchanged in August, as a decline in fuel costs offset an increase in food prices.
  • Core producer price index edged up 0.1% in August, marking the ninth straight increase, but below the expected rate.
  • US retail and food services sales reached $389.5 billion in August, with virtually no growth from the prior month.
  • Crude supplies fell 6.7 million barrels, or 1.9%, to 346.4 million barrels, compared to the week before.
  • Gasoline inventories gained 1.9 million barrels, or 0.9%, to 210.8 million barrels, while analysts had expected a 400,000-barrel decline.
  • German Chancellor Angela Merkel reportedly sought to ease fears over Greece's potential default, stating that European leaders need to act more forcefully to address the crisis.
  • Treasury Secretary Geithner stated that there is "no chance" of a Lehman-style European default.
  • Stock prices for several companies, including BP, Halliburton, and Intel, were affected by news and reports on various issues.

Statistics:

  • Wholesale price index remained unchanged in August.
  • Core producer price index edged up 0.1% in August.
  • US retail and food services sales reached $389.5 billion in August.
  • Crude supplies fell 6.7 million barrels, or 1.9%, to 346.4 million barrels.
  • Gasoline inventories gained 1.9 million barrels, or 0.9%, to 210.8 million barrels.
  • December gold contracts are down 0.25% to $1,825 an ounce.
  • October crude oil contracts are down 2.01% to $88.39 a barrel.

Sources:

  • MidnightTrader.com, September 14, 2011.
  • MarketWatch, cited by MidnightTrader.com, September 14, 2011.
  • Dow Jones Newswires, cited by MidnightTrader.com, September 14, 2011.
  • Comtex SmarTrend Alert, as of September 10, 2011, 23:59.
  • US Energy Information Administration, cited by Comtex SmarTrend Alert, as of September 10, 2011, 23:59.
  • Platts, cited by Comtex SmarTrend Alert, as of September 10, 2011, 23:59.