Investors took today's release of positive retail sales numbers and pushed stocks to a 13 month high. They focused on the news, and ignored a cautionary speech from Fed Chairman Ben Bernanke, who said that economic "headwinds" will slow economic expansion in the United States. Bernanke added that "unemployment [remains] much too high" and that "future setbacks are possible."
Still, the news on retail sales won over investors. According to some analysts, any positive news on consumer spending will be interpreted positively. With the unemployment rate remaining high as Bernanke noted, consumers remain challenged. But, the good news on consumer spending gave investors hope for the holiday season.
Investors also got some good news on the consumer front from American Express. The company reported that writeoffs decreased to 7.8 percent, down from 8.4 percent last month. With unemployment increasing, more credit card holders can be expected to default so seeing a drop in that number was positive news.
The good news helped push the Dow up by 1.3 percent to 10,407. The S&P climbed by 1.5 percent to 1,109. And the Nasdaq increased by 1.4 percent to 2,198.
The push above the 1,100 level was technically important for traders, and could be a sign that the trend towards higher stock prices will continue.
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Still, the news on retail sales won over investors. According to some analysts, any positive news on consumer spending will be interpreted positively. With the unemployment rate remaining high as Bernanke noted, consumers remain challenged. But, the good news on consumer spending gave investors hope for the holiday season.
Investors also got some good news on the consumer front from American Express. The company reported that writeoffs decreased to 7.8 percent, down from 8.4 percent last month. With unemployment increasing, more credit card holders can be expected to default so seeing a drop in that number was positive news.
The good news helped push the Dow up by 1.3 percent to 10,407. The S&P climbed by 1.5 percent to 1,109. And the Nasdaq increased by 1.4 percent to 2,198.
The push above the 1,100 level was technically important for traders, and could be a sign that the trend towards higher stock prices will continue.
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