Here is a quick update on US stock market today

On Monday the stock-market showed clear indications that the US economy is recovering at a good pace. The tax reduction enforced last month caused the income of the consumers to soar high. Statistics tell that the personal income of American laborers went up by 1 percent last month. This is the largest percentage of increase by far in two years. According to experts the increasing oil prices is no big deal.


However, the spending percentage did not increase proportionately with the income percentage. The percentage of expenditure became 0.2% to 0.1%, thus gaining only 0.1%. The slow pace of the expenditure index brings home the fact that consumers have not been able to rely upon US economy entirely. People are reluctant about their investments even as the market improves. According to some experts the poor weather may have stood as an obstacle in the way of the spending growth last month. They are expecting the spending index to go up as the year advances. This will help to strengthen the economy. Current stock market signs are very promising also. This minuscule increase in the expenditure percentage boosted the expenditure rate up to an amazing $10.59 trillion. This rate is 7.4% higher than the rate of recession-hit December, 2008. Economists predict that the reduction on social security tax will add an extra $1000 to the family’s income amount.

Although, all the predictions of the economists are not positive but there is hardly any sign that the number of jobless people will go down. Moreover, the pace of housing recovery is not expected to be very high. But these negative sides are expected to be driven away by the end of this year. The strong market in Asia and the new investments in equipments and software are supposed to give the market a new impetus.

The raging rebellion of Libya continues to be a difficulty in the oil market. It has reduced Libya’s oil output by 50%. Foreign companies have ordered their employees to leave Libya. This has resulted in a great shortage of man-power in extracting oil. The US secretary of State Hilary Clinton said that US is trying every possible solution with Libya and no stone will be left unturned. The tension regarding the global oil market decreased a lot when some Libyan ports re-opened. Saudi Arabia’s encouraging approach towards oil export caused the oil price to come down to about $97 a barrel. This is definitely great news for the investment market. But the assurance of Saudi Arabia of steady oil supply has eased the situation to a great extent. It will possibly prevent further upsurges in the oil price.

New deals signed or proposed by Ventas Inc., Australia’s Equinox Mineral’s Limited gave the market the much needed boost. Ventas inc. announced to buy Nationwide Health Properties for $5.8 billion. Ventas Inc. re-asserted their position as the biggest US owner of senior housing by this venture.

US President Barack Obama assured that the state’s attempts to balance the budget will not deprive the citizens of their collective bargaining rights. The president said in the White House that while everyone will have to make some sacrifices to revive the finances. But he assured that the onus will not entirely be on the laborers.

The US market closed on an optimistic note so far and showed promises of further improvement.