All three major indices are receiving a modest, sub-1% bump up following the Labor Day weekend, with the Dow at 9,479, up 38 points, or .4%. Later this afternoon data will show whether July’s consumer credit levels improved form June. Consumer’s borrowing declined $10.3 billion that month. Oil rose, with Light sweet crude futures for deliveries in October rising $2.09/barrel on Nymex to $70.11, which The Associated Press attributes to increased optimism about the economy and the dollar’s sinking to its lowest point of the yea against the Euro. A Wall Street Journal piece quotes Saudi Arabia’s oil minister as saying OPEC observes both consumers and suppliers are happy with crude at prices between $68 and $73. Gold is also benefitting from the softening dollar, rising to $1,007.45 per ounce, with analysts thinking it could go as high as last year’s high mark of $1,030.80, according to Reuters. Miner Barrick Gold (ABX) is up 96 cents, or 2.4%, at $41, while the SPDR Gold Trust ETF (GLD) is up 63 cents, or .7%, at $98.16. Shares of Exxon Mobil (XOM) and Chevron (CVX) were both up about 2%, along with other oil majors. Bloomberg leads with a story on the S&P 500’s 50% rally since March, the steepest rally in 70 years. Bloomberg notes that analysts’ average estimate for S&P profits is that they will rise 25% next year, or 10.9 times the rate of increase of U.S. GDP, which is the well above the 60-year average ratio of 6.1 times. Robert Prechter might say we’re in for a swing back to bear territory about now, I suppose.
