Stock Market

With the end of summer drawing near, investors find themselves in far better shape than they probably dared to imagine just a few months ago. So much better, in fact, that many people have a nagging suspicion this is all some kind of Wall Street mirage that could vanish in no time. Putting those understandable fears aside for a moment, let's count up just how much repair has been done to portfolios battered by the markets' crash of last fall and winter. Most major U.S. stock indexes have rebounded more than 50% from their lows in March, a feat few market pros figured was achievable in such a short span.

After giving the stock market a big gain during August, investors still worried about the economy backtracked on the last day of the month. Stocks fell in light trading Monday after a 6.7% plunge in China's main stock market unleashed a wave of selling around the world and added to concerns that stocks had rocketed too high, too fast since hitting 12-year lows in March. The Standard & Poor's 500 index rose 3.4% in August for its sixth straight monthly gain. It is up 51% since early March, the best six-month run since 1938.

NEW YORK -- The stock market lost more ground today after a private sector report on unemployment failed to ease investors' concerns about job losses. Stocks fell modestly in early trading after the ADP National Employment Report said employment fell by 298,000 in August following a revised loss of 360,000 jobs in July. It was the smallest drop since September 2008, but ADP said employment is likely to decline for at least several more months. The ADP jobs report is a closely watched precursor to the Labor Department's crucial monthly reading on the jobs market, which is due Friday.

NEW YORK -- A slightly better report on the labor market for August is sending stocks higher. Stocks inched up in early trading Friday after the Labor Department said employers cut a total of 216,000 jobs last month, less than the 276,000 jobs lost in July and better than the 225,000 figure analysts had been expecting. It was the lowest level of job losses in a year. The unemployment rate, however, jumped to 9.7 percent -- the highest rate since June 1983. Analysts had been expecting the rate to edge up to 9.5 percent after unexpectedly dipping to 9.4 percent in July.

The stock market has lost some of its swagger, and it seems unlikely to regain it any time soon. A six-month rally that sent Wall Street's major indexes up more than 45% from their March lows has hit the wall. While months ago investors welcomed even modest signs that the economy had slowed its decline, now traders won't settle for anything less than signs of actual growth before they'll buy stocks with any enthusiasm again. "There's no catalyst to push the market higher right now," said Brett D'Arcy, chief investment officer at CBIZ Wealth Management Group in San Diego.

The stock market is opening slightly lower as commodities prices extend their rally and the dollar hovers near recent lows. The lower open on Wednesday comes after a gain in European markets and a retreat in Asia. Investors are watching the dollar, which is trading near lows for the year against the euro and a two-month low against the yen after sinking Tuesday. The dollar's recent drop is lifting commodities prices, including oil which is extending its gains. In the early minutes of trading, the Dow Jones industrial average is down 19.12, or 0.2 percent, at 9,499.

Gold fever is back. The question is: For how long? The precious metal leaped above $1,000 an ounce Friday and stayed in four-digit territory, closing at record highs. The steady ascent of gold in recent months -- it is up more than 15% since April -- partly reflects a simultaneous slide in the value of the dollar against other currencies, analysts say. Some gold buyers are also worried about inflation and are skeptical about the ability of any currency to hold its value as they nervously watch the world's central banks flood the financial system with money.

Wall Street wants consumers to do their part to heal the economy. Traders know it's going to take some time. Investors will get some insight this week into how much consumers are spending from a government report on August retail sales. They will also get an indicator of how willing consumers are to borrow money to make those purchases when credit card lender Discover Financial Services reports earnings Thursday. "I think everybody is focusing so heavily on if people are releasing some of those dollars they have been clinging so tightly to over the past year," said Jamie Cox, managing partner at Harris Financial Group in Colonial Heights, Va. Analysts say investors need to see evidence that consumer spending is picking up before the market can extend its recent gains.

NEW YORK -- Investors waded deeper into the stock market today as a batch of economic reports provided mostly upbeat signals about the economy. Retail sales jumped in August by the biggest amount in three years, but inflation at the wholesale level rose at double the rate analysts expected. The Dow gained about 50 points in afternoon trading. Beyond that, the Federal Reserve said manufacturing in the New York region improved for a second straight month in September. Fed Chairman Ben Bernanke also said that the worst recession since the 1930s is "very likely" over.

The Federal Reserve needed a rebound in financial markets this year to set the table for a lasting economic recovery. Mission accomplished -- at least with the first half of the strategy. The central bank's decision to hack short-term interest rates to near zero -- and to pump more than a trillion dollars into the financial system -- has helped fuel a global feeding frenzy for stocks, bonds, gold and other assets over the last six months. The rally in stocks gets the most attention, understandably.