Wall Street is beautiful dynamic, especially when trading is working in one’s favor.
Tuesday just happens to be one of those days that investors and large banking institutions see a lot to rejoice about, considering the stock market is performing at an impressive pace.
Why the sudden boost of confidence? We can all thank the market data, specifically the S&P/Case-Shiller.
Home prices inched upward, rising by 10.2% in the first quarter of 2013 over the first quarter of 2012, according to Tuesday’s data. Consumers are markedly happy as well.
Additionally, the 10- and 20-city composites showed average home prices increase 10.3% and 10.9%, respectively.
As a result, lender stocks including Bank of America [stock BAC][/stock], Citigroup [stock C][/stock], Wells Fargo [stock WFC][/stock] and JPMorgan Chase [stock JPM][/stock] are reaping the benefits of the housing recovery.
For instance, Bank of America is up 1.5% (as of press time), while JPMorgan is also up 1.7%.
The good news keep piling up, as consumer confidence increased again in May in response to a continued rally in the stock market and strengthening housing economy.
The news indicates an improved outlook for the nation’s economy, which also leads to a better trading stock market.
No matter which way you slice the economic data from Tuesday, one thing is certain: Wall Street has placed its bets on housing and, so far, the risk is paying off.
