Chinavesting

The National Association of Home Builders’ Housing Market index dropped to 14 from 16 the previous month; the lowest reading since April 2009. A reading below 50 indicates homebuilders have a negative view of the housing market. Construction jobs fell further, down 2.14 million or 28% since their peak in 2006 and the residential construction subset is down nearly 600,000 jobs, or 43%, since the market's peak.

The National Statistics Bureau reported Thursday that China's gross domestic product, the broadest measure of economic output, grew 10.3 percent in the second quarter, compared with an increase of 11.9 percent during the first quarter. China’s economy has slowed and it is expected to continue at a slow pace for the rest of the year as the government took measures to ward off inflation and rein in a runaway property market. Production dropped to 13.7 percent in June from 16.5 percent in May.

Investors took heart from the stronger-than-expected quarterly results reported by some important companies that are considered as one of the best economic health parameters. Alcoa Inc., the largest US aluminum producer gained 1.2 percent to close at $11.00 per share after it announced its results and raised its estimate for global aluminum consumption. CSX Corp. and Intel Corp. also reported earnings and revenue that beat analysts' expectations to close the Tuesday’s trading session on the green.

With no major economic data reported Wednesday, the US market rallied on a forecast from financial company State Street Corp. about the coming earnings season. State Street announced quarterly earnings at 93 cents per share on $2.3 billion in revenue, exceeding analysts’ expectations, which are estimating a slimmer profit of 72 cents per share on $2.2 billion in revenue. The announcement boosted Bank stocks to a rally followed by industrial and technology shares closing the trading session with the broadest gains in about six weeks.