U.S. Stocks Rise Amid Japan Stimulus, American Home Data (Bloomberg)
U.S. stocks rose, snapping a two-day decline in the Standard & Poor’s 500 Index, as the Bank of Japan increased its asset-purchase target and sales of existing American homes rose more than forecast. Markets are relying on the support of central banks to stay alive, Michael Farr, said president and founder of Farr, Miller & Washington LLC, which manages $825 million. The U.S. economy is behaving in a constructive way, “not fabulous but resilient,” he added. Equities climbed as sales of existing homes rose in August to a two-year high, an additional sign that the U.S. housing market is gaining traction in the second half of the year. Japan’s central bank unexpectedly expanded its asset-purchase target by 10 trillion yen ($126 billion) to 55 trillion yen, seeking to avoid a further slowdown in the world’s third-largest economy.
IPO Scorecard Annie’s Is Yummy, Ubiquity Crushed (Yahoo! Finance)
In a week heavy with housing data, the final few days are expected to bring a slew of initial public stock offerings that include two real-estate focused companies: online listing company Trulia and real estate investment trust (REIT) company Spirit Realty Capital. Along with Trulia and Spirit, other companies scheduled to go public this week are commercial electric truck maker Smith Electric Vehicles (SMTH on the Nasdaq); Capital Bank Financial (CBF on the Nasdaq); Drug manufacturer GlobeImmune (GBIM on the Nasdaq), National Bank Holdings (NBHC on the NYSE) and Susser Petroleum Partners (SUSP on the Nasdaq), according to IPO Scoop.
IRS Whistle-blowing for Fun and Profit (Marketwatch)
The financial community is all astir with the recent news that Bradley Birkenfeld was awarded $104 million for blowing away the entire Swiss banking community’s veil of secrecy. Okay, that’s not really what he did, just a side effect. All he did was provide detailed information about the illegal financial practices of his employer, UBS. Granted, whistle-blowers are not popular. And Birkenfeld is going to jail for his own illegal activities. But when he gets out, he won’t have to worry about being ostracized in the financial community and making a living. He’ll have enough money to do whatever he likes.
Richest Americans’ Net Worth Jumps to $1.7 trillion: Forbes (Reuters)
The net worth of the richest Americans grew by 13% in the past year to $1.7 trillion, Forbes magazine reported on Wednesday. A familiar cast occupies the top of the annual list, including Bill Gates, Warren Buffett, Larry Ellison and the Koch brothers. “The gap between the very rich and merely rich increased and helped drive up the average net worth of The Forbes 400 members to an all-time record $4.2 billion,” said Forbes Senior Wealth Editor Luisa Kroll. Forbes attributed the growth in net worth, in part, to the performance of the stock market and a recovering real estate market.