7/26/10 – theGrio & CNBC Market Update

TheGrio and CNBC team up to deliver a weekly report of money matters and market updates for our community.

CNBC’s Shartia Brantley reports:

Investors had quite a bit of news to digest last week, as President Obama signed the financial regulatory reform bill into law. Banks are most affected by the policy reforms detailed in the bill, but new consumer protection laws promise radical changes for consumers as well.

After a heated debate, Congress approved a $34 billion extension of unemployment benefits for 2.5 million Americans who have been unable to find work for over 6 months.

Blacks have been hardest-hit by the recession, especially among the middle class. According to the latest Ariel Black Investor Survey, 48 percent of blacks said they had pulled money out of savings and investments over the past two years compared to 31 percent of whites.

In the week ahead, investors await several reports on the economy and more second-quarter earnings news.

The Federal Reserve releases its July 2010 Beige Book Wednesday, which provides a snapshot of the economy from the Fed’s twelve districts, including Boston, Dallas and New York. The June report stated that the economy is improving moderately in several sectors, with consumer spending, tourism and business spending on the rise.

We’ll check in on housing Monday with the June 2010 New Home Sales report from the Census Bureau. In May sales of new homes plummeted nearly 33 percent to their lowest level on record, following the initial expiration of the first-time homebuyer tax credit. The tax credit has since been partially extended, which may have an impact on later months.

Are consumers feeling better about the economy? We’ll find out with the July 2010 Consumer Confidence report from the Conference Board. Consumer confidence dropped 10 points in June to a 52.9 reading. The decline is largely attributed to concerns about the faltering labor market.

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