AOL Dumped, Einhorn Shorts Moody’s, Stocks Soar

• May 28, 2009
• Dave Goodboy

An improved treasury market sent stocks soaring despite dismal news from General Motors and the housing front. General Motors has settled on June 1st as a final date for bankruptcy and home foreclosures climbed to a record high dampening stocks strong upward momentum. Time Warner finally decided to dump its money losing AOL unit after failing to find bidders for the internet dinosaur. The DJIA soared +103.78 to 8403.80, the Nasdaq advanced +20.71 to 1751.79, and the S&P 500 climbed +13.77 to 906.83.

Ryland Group
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CarMax
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DSW
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Moody’s
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Oil added $1.63 to $64.69, Gold climbed $8.00 to $963.20 and the fear index VIX fell 2.13% to 31.67.

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Market Snapshot

Dow +103.78 8403.80 NASDAQ +20.71 1751.79 S&P 500 +13.77 906.83

Economic News

S&P/CaseShiller Home Price Index (Mar): Consensus: -18.4%, Prior: -18.63% Consumer Confidence (May): Consensus: 42.0, Prior: 39.2 Existing Home Sales (Apr): Consensus: 4.65M, Prior: 4.57M Durable Goods Orders (Apr): Consensus: 0.5%, Prior: -0.8% Durables Ex-Transport (Apr): Consensus: -0.3%, Prior: -0.6% Initial Claims (05/23): Consensus: NA, Prior: 631K New Home Sales (Apr): Consensus: 356K, Prior: 356K Crude Inventories (5/22): Consensus: NA, Prior: -2.10M GDP – Prelim. (Q1): Consensus: -5.5%, Prior: -6.1% GDP Deflator (Q1): Consensus: 2.9%, Prior: 2.9% Chicago PMI (May): Consensus: 42.0, Prior: 40.1 Mich Sentiment-Rev (May): Consensus: 68.0, Prior: 67.9

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