Stock market on Tuesday

Major stock indices recovered from a slight decline on Tuesday on the back of three bad government reports concerning the US economy.

Major US stock indices recovered very quickly after a small decline on Tuesday despite a series of bad news on the state of the US economy.

The Dow Jones, S&P 500 and Nasdaq Composite were down 0.11%, 0.13% and 0.04% respectively at the close of trading on Tuesday. However at the pre-market on Wednesday they were +0.19%, +0.26% and +0.2 for the Dow Jones, S&P 500 and Nasdaq Composite respectively, confirming the continued strong bullish sentiment in the stock market.

Chicago PMI business index falls

The Chicago Business BarometerTM index fell in August to its lowest reading since June, after hitting a two-month high in July. The reading was worse than economists' forecasts and showed problems in manufacturers' supply chains. Shortages of raw materials, supplies and hiring problems across industries are preventing demand from being met in a timely manner, resulting in lower production and higher prices.

Consumer confidence index

The Conference Board's consumer confidence index, based on consumers' assessment of current business and labour market conditions, fell to 147.3 in August from 157.2 the previous month. The expectations index, based on consumers' short-term outlook for income, business and labour market conditions, fell to 91.4 from 103.8. US house prices

The Case-Shiller house price index rose 1.8% from a month earlier, bringing the annual increase to 19%. However, economists say that the current increase in house prices indicates that the rise in inflation is unsustainable.

Also, according to consumer expectations, prices will rise by 6.8% next year, significantly higher than the 2% rate that policymakers consider stable. According to the ISM-Chicago report, a survey of manufacturers showed that most of them do not expect any improvement in September. In contrast, many economists and central bank governors expect this month to show significant improvements in employment as unemployment benefits become less generous and children return to school.