Market Snapshot September 16, 2009, 4:39PM EST

Stocks Climb on Economic Hopes

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In other company news, Genworth Financial (GNW) said it has priced a public offering of 48 million Class A common shares at $11.75 per share. In addition, Genworth has granted the underwriters an option to buy up to an additional 7.2 million shares to cover over-allotments, if any.

BofA-Merrill upgraded Amazon.com (AMZN) to buy from neutral.

UBS analysts downgraded Verizon Communications (VZ) to neutral.

The chief financial officer of JPMorgan Chase (JPM) said the bank could boost its dividend.

Shares of Apple (AAPL) jumped after Jim Cramer, host of the CNBC program Mad Money raised his target price on the stock to $264 from $200, according to S&P MarketScope. Cramer thinks Apple's EPS will "skyrocket," maybe by as much as 40%, due to a yet-to-be announced accounting change, which Cramer says will allow the company to start recognizing all of its iPhone sales, earnings when they happen, instead of over a two-year time period as dictated by the current standard, according to Cramer.

In economic news Wednesday, the September National Association of Home Builders sentiment index rose to 19 from 18 in August. In line with expectations. Homebuilder sentiment has been improving since hitting a record low of 8 in January, with all components above last year's levels. The index was 17 a year ago. The single family sales index rose to 18 from 16 in August. However, the future index slipped to 29 from 30 (it was 28 a year ago). The index of prospective buyer traffic rose to 17 from 16 (14 a year ago).

U.S. industrial production rose 0.8% in August from an upwardly revised 1.0% gain in July (was 0.5%). That brought capacity utilization up to 69.6% from 69.0% (revised from 68.5%). Manufacturing output rose 0.6%, helped by a 5.5% surge in auto production. But, strength was broadbased as production excluding vehicles rose 0.6%. Utility production climbed 1.9% after a 1.6% decline in July (was -2.4%). Mining was up 0.5% after a 0.6% increase in July (was 0.8%).

Consumer prices rose 0.4% in August, and were up 0.1% excluding food and energy. The increases were in line with the consensus estimates. Energy prices surged 4.6%, but remain down 23% from a year earlier. New car prices dropped 1.3% in August, reflecting the treatment of the "cash for clunkers" program. This should reverse in September. Overall, the CPI is down 1.5% from a year ago, and up only 1.4% excluding the food and energy components.

The current account deficit narrowed to $98.8 billion in the second quarter from $104.5 billion in the first quarter, putting the deficit at the lowest level in 8 years even though it was a bit worse than the consensus estimate of $92.0 billion. The goods and services deficit narrowed to $83.0 billion in Q2 from $92.4 billion in the first quarter, but the surplus on income narrowed to $16.4 billion from $18.3 billion as investment income dropped. Transfers to foreigners increased $1.9 billion to $32.2 billion.

U.S. Treasury capital flows data showed foreigners sold a net $97.5 billion U.S. assets in July, after selling a revised $56.8 billion the month before (previously -$31.2 billion). Private foreign investors sold a net $131.3 billion in July, while foreign officials purchased a net $33.8 billion.