Stocks little changed on light volume

Dow & NAZ are essentially even & advancers are only slightly ahead of decliners. NYSE volume remains very light in this vacation week. As a result, price swings generally do not have a lot of conviction. On insignificant trading, the S&P 500 FINANCIALS INDEX is up 1% from its monthly level reached yesterday.

The Consumer Confidence Index from the Conference Board rose from 77 last month to 81.3, above expectations of 80. Modest good news is always welcome. However, on the home sales front, the news was not so good:

S&P: Home Prices Drop by Record Amount in 2Q- AP

National Home Price Index dropped 15.4%, a record, during Q2 from the prior year. At least some regions in the US are climbing their way out of deep holes. Oil is up on worries about the latest tropical storm:

• Oil Rises as Gustav Approaches Gulf- CNNMoney.com

An analyst estimates that Fannie Mae (FNM)/Freddie Mac (FRE) can survive losses thru the end of the year (only 4 months away):

• Fannie, Freddie Capital Can Absorb Losses: Report- Reuters

He expects losses to represent about 20% of revenues in the last 2 quarters as they are still feeling the effects of massive writedowns.

Today is shaping up as a quiet day on low vacation time volume, a good day to go to the beach.