Most People Appear Optimistic about the Economy and Jobs
By Saghir Aslam
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
To follow up on my previous article on stock market and economy. It is looking stock markets with some bumps here and there which is natural and healthy. All major indexes continue to hit new highs S.P has been the leader right after is NASDAQ although hitting new. Even DOW is up generously. It is good time and fun time for investor.
Having said that one must do his homework, work on good research once you have done all that only then you put your hard earned money to work.
U.S. Consumers viewed the economy with increased optimism.
The Recovery Good News
The U.S. economy’s second quarter rebound was more robust than previously estimated and corporate profits surged, putting the recovery back on track as it ended its fifth year.
Gross domestic product, the broadest measure of goods and services produced across the economy, grew at a reasonably adjusted annual rate of 4.2% in the second quarter when adjusted for inflation.
The agency had previously estimated the second quarter’s growth at 4% relying on incomplete data for international trade, inventories and other sectors.
Home Demand Grows
The number of contracts signed to buy previously owned homes rose in July, a sign that steady job growth is supporting a rebound in housing demand.
An index of pending home sales, reflecting purchases under contract but not yet closed, rose 3.3% to 105.9 in July from June, the National Association of Realtors said that was a bigger gain than the 0.6% rise forecast by economists and placed the index comfortably over the 100 level.
Pending home sales have now risen four of the past five months, though the index remains 2.1% below its level from a year ago. A regional break down of the July data showed sales rising in the Northeast, South and West, though they fell in the Midwest.
Bank Lending Growing
US banks increased their loan balances in the second quarter of 2014 by levels not seen since before the financial crisis, offering evidence of a pickup in lending as the economy slowly recovers.
The Federal Deposit Insurance Corp. said bank’s loan and lease balances grew by $178.5 billion to $8.11 trillion, a 2.3% increase over the previous quarter and the largest quarterly jump since the last quarter of 2007. Commercial and industrial loans, residential mortgages, credit-card balances, and auto loans contributed to the growth, the agency said in its quarterly report of bank’s health.
The FDIC also said the banking industry continued to recover from the financial crisis, though banks are still having trouble boosting revenues in a low-interest-rate environment.
Nonbank Mortgages also Grew
Nonbank lenders made almost a quarter of all mortgage loans in the first half of the year, the highest level since at least, the highest level since at least the financial crisis, accordance to data on the top-30 mortgage originators from industry newsletter Inside Mortgage Finance.
Mortgage lending at big banks such as Wells Fargo & Co. and J.P. Morgan Chase has dropped more quickly than the rest of the industry.
The rise of nonbank lenders is good news for consumers who otherwise might not be able to get a bank loan in the current environment. For banks, this marks a retreat from a business that used to be very profitable but has turned in to a legal and financial.
Orders for big-ticket manufactured goods jumped to a record in July thanks to a surge in aircraft purchases, while under lying gauges of demand indicated strong momentum in broad business spending.
Purchases of durable goods products like airplanes, cars and heavy machinery that are designed to last at least three year.
That was the sharpest increase and highest level in a data series dating back to 1992.
Fewer Took less Pay
More Americans are bouncing back after losing their jobs, and fever are accepting a pay cut as the price of returning to work. Some 9.5 million people lost their jobs between January 2011 and December 2013, including 4.3 million who lost jobs they had held for at least three years.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr. Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, or does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr. Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr. Aslam does not have anything for sale.)