Commentary

July 28, 2009 (FinancialWire) (By Philip Holmes) — Stocks ended higher on Monday after a late rally led by regional bank stocks including Regions Financial Corp. (NYSE: RF) and Zions Bancorporation (NASDAQ: ZION). Investor spirits were also lifted by improved data on new home sales.

The Dow Jones industrial average ended the trading session at 9,108.51, up 15.27 points, while the Standard & Poor’s 500 Index rose 2.92 points, to close at 982.18. The Nasdaq Composite Index gained 1.93 points to close at 1,967.89.

Financials, particularly regional bank holding companies, were worth a second look after investors digested news that June U.S. new home sales were up 11.0%, to a 0.384 million unit annual pace, the third consecutive monthly increase.

All is not rosy, though: investors are bracing for Tuesday’s S&P/Case-Shiller home-price index, which they expect will show prices falling 17.9% versus last May. The Conference Board’s consumer confidence numbers, also released on Tuesday should be on the rise, from 49.3 in June to 50.0 in July.

When coupled with better-then-expected Q2 earnings reports, the overall economic picture is looking better than it has in months, hence the Dow pushing past 9K.

Of course, further bad news on employment could mix with another appalling round of existing home sales and price declines to dampen spirits yet. But many investors now wish they’d been a bit less skeptical over the recent past. 

The Investrend Events Calendar showcases FCF, TSFG, CBU, ONB at Keefe, Bruyette & Woods, Inc. Community Bank Conference; GE Capital Investor Webcast; RRI 2009 Analyst and Investor Day.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 36 advancers versus 14 decliners. Advancers were led by Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) up 29.03%, Novavax, Inc. (NASDAQ: NVAX) up 20.83%, Sequenom, Inc. (NASDAQ: SQNM) up 13.76%, Dryships Inc. (NASDAQ: DRYS) up 13.64%, Regions Financial Cp (NYSE: RF) up 8.94%, E*Trade Financial Corporation (NASDAQ: ETFC) up 8.45%, Ford Motor Company (NYSE: F) up 7.23%, Huntington Bancshares Incorpora (NASDAQ: HBAN) up 6.81%. Decliners followed Mylan Inc. (NYSE: MYL) down 12.64%.

Investrend Website of the Day: http://www.thripz.com

Quote of the Day: “If you can’t answer a man’s argument, all is not lost; you can still call him vile names.” Elbert Hubbard

Today is: Independence Day in Peru, National Milk Chocolate Day.

Happy Birthday: Beatrix Potter, Rudy Vallee, Jacqueline Kennedy Onassis, Sally Struthers

Today in History: Thomas Cromwell was executed on order from Henry VIII of England on charges of treason in 1540. The Metric Act of 1866 became law in 1866, legalizing the standardization of weights and measures in the United States. A US Army bomber accidentally crashed into the 79th floor of the Empire State Building in 1945, killing 14 injuring 26.

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