Optimistic News from Home Builders

Despite early morning indicators pointing towards a downturn in markets optimistic news from the homebuilders spurred the markets to rise. Stocks rose slightly on Wednesday after news of government aid for some life insurers and a merger among homebuilders spurred optimism that offset a quarterly loss from Alcoa (AA). More good news followed when the government announced that it is shoring up life insurers. To go along with this Bed Bath & Beyond Inc (BBBY) reported a better-than-expected profit providing optimism for consumer spending. Life insurers, whose capital base has been diminished by the markets, have met requirements for government funds. Wall Street took this optimistic news positively as for one it shows we could be closer to the bottoming of the housing crisis.  Personally I believe the housing market will fall a little further. We still need to shore up the credit lending before the American people start rushing out to purchase a home. Other industries to watch are Technology. This is an industry which could bump from the better than expected consumer spending reports. Companies such as Apple (AAPL), Microsoft (MSFT), Research in Motion (RIMM), and Dell (DELL) are all companies who should benefit and could see a bump in share prices.  Good to hear more optimistic news swirling around Wall Street as it has been a rough ride so far with many people believing the light at the end of the tunnel is hindsight for once.

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