Did US bank shares rise after increase in new home sales?”
U.S. bank shares rise after increase in new home sales 07.27.09, 05:07 PM EDT pic NEW YORK, July 27 (Reuters) – U.S. bank shares rose on Monday after a surprisingly large increase in U.S. new home sales and positive analyst comments increased investor optimism that the worst may be over for the troubled sector. Commerce Department data showed an 11 percent increase in home sales in June, the biggest gain in eight years, to a still low 384,000 annualized pace. Inventories of unsold homes fell to the lowest level since early 1998. Monday’s data reinforce increased optimism ‘the economy has stabilized and will grow in the third quarter,’ said Jim Awad, a managing director at Zephyr Management in New York. The economy went into recession in December 2007. Increased economic activity may make it easier for businesses to invest, borrow and hire more, reducing the potential for consumer and business loans to sour, reducing lenders’ profitability and capital. Bank of America Corp ( BAC – news
U.S. bank shares rose on Monday after a surprisingly large increase in U.S. new home sales and positive analyst comments increased investor optimism that the worst may be over for the troubled sector. Commerce Department data showed an 11 percent increase in home sales in June, the biggest gain in eight years, to a still low 384,000 annualized pace. Inventories of unsold homes fell to the lowest level since early 1998. Yahoo! BuzzMonday’s data reinforce increased optimism ‘the economy has stabilized and will grow in the third quarter,’ said Jim Awad, a managing director at Zephyr Management in New York. The economy went into recession in December 2007. Increased economic activity may make it easier for businesses to invest, borrow and hire more, reducing the potential for consumer and business loans to sour, reducing lenders’ profitability and capital.
