Market Watch 09/25/2009

Today is Friday, The weather is sunny in here.

 

Stocks fall as durable goods orders, new home sales lag expectations.

 

Durable goods orders, a key indicator for the manufacturing industry, fell unexpectedly in August.

 

It was the second drop in three months and the latest sign that any rebound inside the nation’s factories is likely to be slow.

 

Meanwhile , the government also reported that new home sales inched up to 429,000 last month, below analysts’ expectations. The tepid improvement followed four months of stronger gains in new home sales that had raised investors’ hopes that the troubled housing market was improving.

 

On Friday, the Dow fell 42.25, or 0.4 percent, to 9,665.19. The index hasn't fallen three straight days since the first week of the month. The broader Standard & Poor's 500 index fell 6.40, or 0.6 percent, to 1,044.38, and the Nasdaq fell 16.69, or 0.8 percent, to 2,090.92.

The week's economic data marked an improvement from a few months ago but still disappointed the market by coming in well shy of analysts' expectations -- a sign that investors might be underestimating how long it will take for the economy to recover. The market will likely need more convincing evidence that the economy is on track before moving higher again.

Next week's heavy calendar of economic reports could help provide more clarity about how the recovery is going. On Friday, the Labor Department will release its monthly employment figures, one of the most closely watched economic reports. Other figures are expected on consumer confidence, manufacturing, factory orders and home prices.

In other trading, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.32 percent from 3.38 percent late Thursday.

The dollar was mixed against other major currencies, while gold prices fell for a third day.