NPR 2009-08-26

A key national home price index released today shows a rise of nearly 3% during the second quarter although the S&P/Case-Shiller index is still down 15% from last year. NPR Yuki Noguchi reports.

The index is a composite of monthly prices in 20 major markets and it appears to show recovery through most of the country. Of those major markets, only Las Vegas and Detroit continue to decline in June. On a national basis, at least housing prices now stand at the same level as early 2003. These new numbers come on the heels of a National Association of Realtors report last week. That shows that the existing home sales increase for the fourth straight month as buyers rush to take advantage of a first-time home-buyer tax credit that expires in November. Improved home sales are one area that give economists 2 hope that the country has moved past the worst of the recession, although there are concerns that continued foreclosures and job losses could hurt that recovery. Yuki Noguchi, NPR News.

Consumers also appeared more confident as summer winds down. The non-profit business research group, the Conference Board says its consumer confidence index posted a bigger than expected rise this month. The board says its consumer index was up nearly 7 points, well ahead of  analysts’ expectations. However, Lynn Franco, director of the Conference Board’s consumer research center says it's also clear the economy isn't out of the wood yet in terms of the downturn. “Hopefully we will continue to see an increase in confidence levels. Although we did have a bounce back in August, it still remains 3 at very weak levels.” The August reading reverses two months of declines and is closely watched by economists since spending by consumers accounts for roughly 70% of overall US economic activity.

President Obama briefly 4 interrupted his Martha's Vineyard vacation to announce his nomination 5 of the Federal Reserve Board Chairman Ben Bernanke to a second term. With 55-year-old Bernanke at his side, the President credited him with helping 6 to lead the nation through the worst economic crisis since the Great Depression.

A huge vehicle bombs exploded in the city of Kandahar, Afghanistan, killing 7 at least three dozen people and wounding dozens more. NPR's Soraya Sarhaddi Nelson says the blast occurred in a neighborhood of homes, businesses and shops.

It's a residential 8 area, but that it has restaurants, and again it was a part of construction company, so I think it's a mixed commercial and residential area. What I'm hearing though again from the criminal investigation 9 division head there is that three homes that have collapsed 10. At the time when this attack occurred which was some time between 7 p.m. and 7:30 p.m. Kandahar Time, it is a time when families would have been sitting around breaking the traditional Ramadan fast. And so, a lot of people would have been indoors at this stage when the bomb went off. NPR's Soraya Sarhaddi Nelson.

On Wall Street today the Dow Jones Industrial Average gained 30 points, closing at 9,539. The NASDAQ was up 6 points. The S&P 500 rose 2 points today.

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Some conflicting but still fairly sobering budget projections 11 from the White House and Congressional officials with both showing rising pools of government red ink. However, the White House Office of Management and Budget and the non-partisan Congressional Budget Office said today they expected the budget deficit 12 this year to approach a record 1.6 trillion dollars. That’s more than triple the 455 billion dollar deficit logged in 2008. The area where the two differ though was longer term. The White House is forecasting a 9 trillion dollar cumulative 13 deficit through 2010 to 2019, congressional levels put that number at roughly 7 trillion dollars.

South Korea launched its first rocket today but failed to send the satellite into orbit. From Seoul, Doualy Xaykaothao reports.

The cheers and applause that greeted the rocket launch did not last long. A government minister told reporters the Korea Space Launch Vehicle 1 or Naro 1 failed to put a scientific satellite into its intended orbit. Aerospace 14 researchers are still examining data to find out how the satellite went off its trajectory 15. Officials were calling the historic rocket lift-off a partial success. The two-stage rocket built by South Korean and Russian scientists cost about 400 million dollars and was several years in the making. Rival North Korea launched its own rocket four months ago but that was widely seen as a disguised missile test. For NPR News, I'm Doualy Xaykaothao in Seoul.

Quarterback Michael Vick makes his preseason debut 16 tonight with the Philadelphia Eagles. The three-time Pro 1 Bowller has not played in an NFL game since 2006. Vick was released from federal custody 17 last month after serving 18 months of a 23-month sentence for his conviction on charges of being involved in dog fighting. It's not clear how much Vick will play in tonight's game against Jackson Bill.