Stocks Surge, Dollar Drops, Commodities Gains

Analysts’ upgrades of market critical companies and optimism over tomorrow’s FOMC statement drove stocks to near short term highs on the session. The Dollar is feeling pain as the EUR/USD pair rallied higher toward the technical resistance of 1.5000 level. The tumbling dollar fueled buying in the commodity complex pushing gold, copper and oil higher. The DJIA gained +51.01 to 9829.87, the Nasdaq moved higher by +8.26 to 2146.30 and the broad based market barometer S&P 500 stretched ahead by +7.00 to 1071.66.

American International Group
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: Ended the day lower by 5.37% or $2.60 to $45.80/share despite a lawmaker saying he would give serious consideration to easing the bailout terms.

Carnival Corp
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: The cruise line floated higher today by 4.75% or $1.52 to $33.52/share after increasing its full year forecast.

Macy’s
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: Upgraded to “buy” at Citigroup, with shares reacting by climbing 5.51% or 98 cents to $18.77.

CarMax
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: Crushed analysts second quarter profit forecasts due to the “Cash for Clunkers” program. The stock climbed 9.67% or $1.87 to $21.20/share.

Oil climbed $1.84 to $71.55, gold added $10.60 to $1016.30 and the fear VIX index fell 4.07% to 23.08.

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Market Snapshot

Dow

+51.01 9829.87

NASDAQ

+8.26 2146.30

S&P 500

+7.00 1071.66

Economic
News

Leading Indicators (Aug): Consensus: 0.7%, Prior: 0.6%

FHFA US Housing Price Index (Jul): Consensus: 0.5%, Prior: 0.5%

Crude Inventories (09/18): Consensus: NA, Prior: -4.73M

FOMC Rate Decision (Sep): Consensus: 0.25%, Prior: 0.25%

Initial Claims (09/19): Consensus: 550K, Prior: 545K

Continuing Claims (09/12): Consensus: 6195K, Prior: 6230K

Existing Home Sales (Aug): Consensus :5.33M, Prior: 5.24M

Durable Orders (Aug): Consensus: 0.3%, Prior: 5.1%

Durables, ex Transportation (Aug): Consensus: 1.0%, Prior: 1.1%

Mich Sentiment-Rev (Sep): Consensus: 70.5, Prior: 70.2

New Home Sales (Aug): Consensus: 440K, Prior: 433K