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The Dow rose 60.59 points, to close at 10,683.74. Besides, both the Nasdaq, and the S&P posted profits. The Nasdaq rose 22.77 points, to close at 2,218.15, while the S&P closed at 1,244.12, after climbing 8.77 points.

Today, General Motors (GM) renewed its “employee discount for everyone” program, which meant that GM slashed costs for many of its 2006 models. Overall, monthly sales set records at General Motors Corp., Ford Motor Corp., Toyota Motor and Nissan North America. Apparently, the slogan of GM, “you pay what we pay” was a simple advertising that caused clearing inventory and reversing a downward trend in GM sales. These are good news to GM, and Ford, which acquired a similar discount program.

Among Dow components, Alcoa Inc. increased 3.1 percent, after Credit Suisse First Boston upgraded stocks in the mining industry. On the other hand, shares of General Motors fell 0.9 percent, due to a report that showed a 3 percent drop in car sales due to fewer sales to fleet customers. Intel Corp. rose 1.7 percent, caused by a rally in the semiconductor sector. Investors expect that chip sales will rise in this second half of 2005. Also, Microsoft Corp., climbed 3.4 percent to close at $26.81.

According to the Commerce Department, U.S consumers spending grew 0.8 percent in June, while incomes also gained 0.5 percent. Nevertheless, the nation’s personal saving rate fell to 0 percent, which is the lowest level since October 2001. Futures of crude oil ended session high due to optimism among investors about the supposed instability in Saudi Arabia following the death of its king announced yesterday in the news. Crude for September delivery closed up 32 cents, to close at $61.89 a barrel on the New York Mercantile Exchange, which represents a new record in oil price.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter