Good News Friday
Six-Pack of Good News
- The Conference Board’s index of leading indicators increased 0.7 percent in June, its third consecutive monthly gain and the sharpest three-month rise since 2003. The index is a weighted average of 10 key variables designed to forecast economic conditions six to nine months in advance. The latest reading is a clear sign that the recession is drawing to a close.
- Dismal Scientist, part of Moody’s Economy.com, identified 23 metro areas where the recession is moderating. Click here to view the list and read the article.
- The Dow Jones Industrial Average ended yesterday above 9000 for the first time since early January thanks in part to a $2.3 billion quarterly profit reported by Ford Motor Company. Although the profit was attributable to debt restructuring, Ford stock rose 9.4 percent on the news.
- Existing home sales rose 3.6 percent in June, the third consecutive monthly increase and the longest string of gains since 2004. Condo sales increased by 14 percent while single-family sales gained 2.5 percent.
- Last month Goldman Sachs repaid the $10 billion it received in TARP funds, and now the company has paid $1.1 billion to repurchase the stock warrants issued to the U.S. Treasury. Taxpayers made an annualized return of 23 percent. Click here to read an article from The Associated Press.
- THE RECESSION IS OVER… in Canada, reports the Bank of Canada. Click here to read the article in The Globe and Mail.
Robert Bach
SVP, Chief Economist
Grubb & Ellis