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Last updated 11:43 am CT September 02, 2010.
Stocks Soar on Bank Plan & Rising Home Sales
Analysts are attributing the surge to two things.
It's said that investors are reacting to the Obama administration's bank bail-out plan. The plan involves private sector investors-- helping to buy up toxic assets-- making it easier for banks to provide loans.
Also driving the market is an unexpected rise in home sales.
Wanda Lee Miller with Coldwell Banker just sold a home in Murphysboro to a young couple. She says recently, business has been good.
"It seems like our sales are more frequent since the first of the year, much better than they were the last quarter of last year."
Miller says the southern Illinois housing market has remained stable at a time when other parts of the country struggle.
New statistics show that may be changing.
From January to February, home sales grew 5.1% as buyers took advantage of discounts on foreclosures. The median sales price is now $165,400.
"The prices of homes have probably leveled out to be more in tune with a real market rather than an inflated market" says Miller.
Investors on Wall Street are welcoming the news about home sales, but they're also cheering on a new plan to ease credit and aid banks.
"It gives investors some hope that the financials can get back on track and the market can get back on track" says Certified Financial Planner Jeff Rose.
Rose says this is much different than the outlook just 3 weeks ago.
"It was dismal. It was pessimistic. We thought the dow was going to 5500. Then a short few days later, the mood switched."
Rose says it's been a year since the market has seen a significant upward trend.
"December was the last time that we saw a consecutive day rally-- and that's just a couple of days. People are optimistic, but they're also cautious as well."
Asian stock markets also soared today. Analysts attribute that to the U.S. bank bail-out plan. Japan is also signaling more stimulus measures to help its economy.
By: Jackie McPherson
jmcpherson@wsiltv.com
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