Wall Street rallies on data, ECB bond-buying program

NEW YORK (Reuters) - Stocks rallied on Thursday on positive economic data and the European Central Bank's agreement to launch a new and potentially unlimited bond-buying program to lower struggling euro zone countries' borrowing costs.

U.S. data showed signs of improvement in the labor market ahead of the all important non-farm payrolls report on Friday and also stronger growth in the services sector.

ECB President Mario Draghi, seeking to back up his July pledge to do whatever it takes to preserve the euro, said the central bank's new plan would address bond market distortions and "unfounded" fears of investors about the survival of the euro.

The program, which Germany's Bundesbank is known to have opposed, would focus on bonds maturing within three years and was strictly within the ECB's mandate. Draghi said only one member of the ECB Governing Council had dissented.

"It's definitely giving more comfort to the market. It was what the market was looking for, and we can see that the yields on Italian, Spanish and Portuguese bonds have already come down," said Rex Macey, CIO of Wilmington Trust Investment Advisors.

Data showed the pace of growth in the massive U.S. services sector rose in August on the back of a rebound in employment and exports, though a measure of new orders declined.

Prior to Draghi's news conference, a separate report showed U.S. private employers added 201,000 jobs in August, easily beating economists' expectations.

Another report showed the number of Americans filing new claims for jobless benefits fell last week to its lowest level in a month, also an upbeat signal for a labor market that has struggled to create enough jobs.

The Dow Jones industrial average (^DJI) gained 174.49 points, or 1.34 percent, to 13,221.97. The Standard & Poor's 500 Index (^GSPC) rose 18.63 points, or 1.33 percent, to 1,422.07. The Nasdaq Composite Index (^IXIC) climbed 39.66 points, or 1.29 percent, to 3,108.93.

Earlier, the ECB also announced that it will keep its main interest rate at a record low of 0.75 percent, holding fire after a pick-up in inflation last month offset pressure to breathe life into the flagging euro zone economy by easing borrowing costs.

In company news, Supervalu Inc (SVU) said it would close about five dozen stores as it works to turn around its grocery business, which lags Kroger Co (KR) and Wal-Mart Stores Inc (WMT). The stock was up 1.8 percent at $2.32.

Realty Income Corp (O.N) plans to acquire American Realty Capital Trust Inc (ARCT.O) for about $1.93 billion as it looks to diversify its portfolio outside of the retail industry. Shares of Realty Income rose 3.3 percent to $43.90 and Capital Trust rose 4.8 percent to $12.53.

Tag : News

The 10 Best States to Be Young in America Business Insider

Between crushing student debt and and a staggering 13.9 percent unemployment rate, there's no denying the recession has been unkind to America's young adults.

Even so, we may be putting too much focus on the big picture when it comes to gauging how badly young people are faring, says MoneyRates.com financial analyst Richard Barrington.

"There are so many stories about how difficult conditions are for young adults ... but one thing that we know is that conditions vary greatly from state to state," Barrington told Business Insider. "Probably the clearest example of that is the unemployment rate. While it's steadily remained around 9 percent nationally, in some states it's under 5 percent."

In a new study that hones in on where 20-24 year olds have the best shot at thriving in today's economy, Barrington analyzed 9 key lifestyle factors in all 50 states––including youth unemployment, education costs, car insurance, housing, nightlife, and overall healthfulness.

1. North Dakota

 

emjay / Flickr 

"While North Dakota may not be the first place you think of when it comes to youth culture, given how tough things are for young people these days, it might be wise to look somewhere off the beaten path," Barrington suggests.

"North Dakota's booming economy gave it very high marks across the board in economic categories, and it did just well enough in the lifestyle categories to grab the top spot."

Stats:
Youth unemployment rate: 5.3% (The lowest of all 50 states)
Percentage of population aged 20-24: 12.05%
Average car insurance rate: $1,400
Average cost of higher education: $10,774
Median rental cost:  $564

2. South Dakota

 

Wikimedia Commons 

South Dakota wins the runner-up slot with dirt cheap apartments for the young residents that fill its borders. It also has a relatively low unemployment rate.

The only sector where it's lacking? "Youth-oriented retailing," Barrington says.

Stats:
Youth unemployment rate: 8.4%
Percentage of population aged 20-24: 10.01%
Average car insurance rate:  $1,338
Average cost of higher education: $14,900
Median rental cost: $562

3. Iowa

 

Wikimedia Commons 

Drivers will dig Iowa for its insurance premiums, which are the lowest in the nation, according to Insure.com. It beats out just about every other state on this list in rental rates, too.

Stats:
Youth unemployment rate: 11.3%
Percentage of population aged 20-24: 10.04%
Average car insurance rate: $1,220
Average cost of higher education: $17,057
Median rental cost:  $611

4. Montana

 

norris baby / Flickr 

Montana ranks high for low rental costs and a relatively cheap college tuition.

Bonus: "It has a surprisingly high number of health clubs and top-rated bars for its population size," Barrington says.

Stats:
Youth unemployment rate: 14.7%
Percentage of population aged 20-24: 9.56%
Average car insurance rate: $1,634
Average cost of higher education: $14,431
Median rental cost:  $627

5. Nebraska

 

zachd1_618 / Flickr

Nebraska isn't just a bargain for retirees. Young people can find rental rates more than $150 below the national average and have a far greater chance at scoring a job than in most other states.

Stats:
Youth unemployment rate: 7.9%
Percentage of population aged 20-24: 9.99%
Average car insurance rate: $1,646
Average cost of higher education: $13,574
Median rental cost:  $644

6. Delaware

 

The Delaware Art Museum / jb912 / Flickr

On top of low tuition rates, "There are a surprising amount of top-rated bars and youth-oriented stores for such a small state," Barrington notes.

"Just try to live in a city where you can use public transportation, though, since Insure.com reports that Delaware has the nation's highest auto insurance premiums in the 20-24 age group."

Stats:
Youth unemployment rate: 11.4%
Percentage of population aged 20-24: 10.12%
Average car insurance rate: $3,006
Average cost of higher education: $12,192
Median rental cost:  $949

7. Vermont

 

mahalie / Flickr 

Clear across the country from youthful Alaska, Vermont is also high on the young worker scene.

"They're into fitness too," Barrington says. "Based on [International Health, Racquet & Sportsclub Association] figures, Vermont has more fitness clubs per capita than any other state. But you might want to put off moving there until after college, since average four-year tuition costs are among the highest in the nation."

Stats:
Youth unemployment rate: 12.8%
Percentage of population aged 20-24: 10.37%
Average car insurance rate: $1,566
Average cost of higher education: $23,361
Median rental cost:  $829

8. Alaska

 

alaskandude / Flickr

"Since it is one of the most youthful states in the country, perhaps it should be no surprise that Alaska offers some attractive stats in most of the lifestyle categories," says Barrington.

"The tough part is finding a place to live: According to the Census Bureau, Alaska has the nation's lowest rental vacancy rate."

Stats:
Youth unemployment rate: 12.80%
Percentage of population aged 20-24: 10.54%
Average car insurance rate: $1,925
Average cost of higher education: $15,431
Median rental cost: $1,007

9. Utah

 

Sothebys International Realty

With nearly more than 11 percent of its residents in the 20-24 year age bracket, Utah has far more going for it than stunning scenery.

"While not great on most lifestyle factors, Utah has very low unemployment among young adults, and the lowest average cost of four-year colleges," Barrington says.

Stats:
Youth unemployment rate: 8.5%
Percentage of population aged 20-24: 11.51%
Average car insurance rate: $1,733
Average cost of higher education: $5,745
Median rental cost:  $793

10. New Hampshire

 

bdthomas / Flickr

You'll pay more to attend a four-year university in New Hampshire, but cash-strapped college grads can take comfort in its decent employment rate for young workers.

"Despite scoring high on the availability of bars, fitness clubs and youth-oriented stores, New Hampshire's population is relatively low on young adults," Barrington says. "That's a pity, because unemployment for that demographic is relatively low there."

Stats:
Youth unemployment rate: 8.7%
Percentage of population aged 20-24: 9.3%
Average car insurance rate: $1,631
Average cost of higher education: $26,234
Median rental cost:  $918

Tag : News

Buy Stocks When Romney Grabs the Lead: Schoenberger

Forget the applause lines, balloons and video tributes, the most striking thing about the GOP and Democratic conventions is the preternatural pep of the delegates. It's all but impossible to understand how anyone without a dog in the fight can possibly take the words of politicians at face value. Somewhere in the wake of 9/11 the country lost it's way. Since then there's been little in the way of tangible progress towards regaining national momentum. The blame belongs to both parties; anyone who says otherwise is deluded or sitting under a stovepipe American flag hat in Charlotte.

Todd Schoenberger of the Black Bay Group thinks a Romney victory could soothe an economy paralyzed by fiscal uncertainty, helping corporate America get back on track.

"If you have the GOP that takes over the White House you're going to have companies that are going to feel a little more secure," says Schoenberger in the attached clip. Once a fiscal plan is in place, particularly if it's pro-business, companies will put their cash-heavy balance sheets to work. "If that's the case, that's good for stocks."

Not really. The palaver being spouted this week and last isn't about finding solutions. It's about blaming someone else for everything bad that's ever happened and vowing to never give an inch to the other side. Bombast makes for a great speech but it isn't policy. There's been no tangible, realistic, fiscal plan offered by either side. Just muckraking and noise. Former President Clinton made the first real mention of cooperation of the season in his speech last night. Alas, ex-Chief Executives have no more power in Washington than they do on Wall St.

Returning to the now, Schoenberger thinks the picture for Americans will get a little clearer with the first debate on October 3rd. Over the course of 90 minutes with hard-hitting Jim Lehrer as moderator, either President Obama or Governor Romney will have to offer specifics, as Schoenberger sees it. That's when he thinks Romney gains the advantage that will give Americans a glimpse of our economic future.

"You've got to have some type of strategy moving forward to get this country moving again," he says. "We haven't had it but I think we will on October 3rd."

After a decade of flailing about, both America and the equity markets would welcome the certitude.

Tag : News