The Closing Look

Stocks rallied on Tuesday after investors digested the first Presidential debate and the latest round of economic data. The S&P Case-Shiller index showed home prices were flat last month, missing estimates for a gain of 0.1%. Meanwhile, year-over-year, home prices rose by 5% which is a decent gain. A few home-builders rallied on the news. Separately, the PMI services flash index came in at 51.9, higher than the last reading of 50.9. Consumer confidence rose to 104.1, beating estimates for 98.8. The Richmond Fed Manufacturing Index fell to -8, which was higher than the last reading of -11. Stanley Fischer, the second in command at the Fed gave a speech which focused on more diversity and steered clear on policy.

Gary’s thoughts: Market gets back almost what it lost Monday but leading growth names set up well in here. Nothing wrong with narrow markets as long as growth leads.