Stocks Market: Solid Earnings and Home Builder Confidence Increase

Today, Monday October 18, 2010, the National Association of Home Builders said that its home builder confidence index moved up to 16 in October after last month's reading of 13. The upward move also defied forecasts for the index to remain at 13. The increase came as market conditions, sales projections and consumer prospects all showed gains.
Further, the Federal Reserve reported that industrial production unexpectedly declined in September. The headline number showed a drop-off of 0.2 percent compared to the 0.2 percent uptick recorded in August. The fall surprised economists who had forecast an increase of 0.2 percent, while the figure also marked the first fall in production after six months of increases. The report also showed that capacity utilization inched down to 74.7 percent in September from 74.8 percent in August. Initial forecasts looked for the figure to remain flat at 74.8 percent.

We continue a slow grinding economic development with high unemployment rates and solid corporate earnings. Just compare to our last quarter report:

http://neverlosstrading.wordpress.com/2010/07/11/a-new-earnings-season-what-will-the-stock-market-do-next/

Overall the market continues positive based on strong earnings reports:

In earnings news, Citigroup Inc. released third quarter results showing net income of $0.07 per share compared to a loss last year, while edging out estimates for $0.06 per share for the quarter. The firm was able to turn a profit following a significant reduction in provisions for credit losses. Revenues for the quarter came in at $20.74 billion, short of revenue estimates of $21.15 billion for the quarter.

Halliburton Company reported third-quarter net income of $0.60 per share, above EPS estimates for $0.55 for the quarter. Total revenues were $4.67 billion, also beating expectations which called for $4.63 billion for the period.

Hasbro Inc. posted third-quarter net earnings of $1.09 per share, topping projections for $1.04 per share for the quarter. Net revenues rose 3 percent to $1.31 billion, also coming in above estimates which called for $1.29 billion in revenues for the quarter.