Market Summary

Wall Street rose Wednesday in a back and forth session. Stocks turned positive shortly after the open, however returned gains following the release of the fed’s beige book during mid afternoon action. The Dow Jones Industrials rose 49.88, or 0.5 percent, to 9,547.22. The blue chips have gained 267 points, or 2.9 percent over the past four sessions. The broader Standard & Poor’s 500 index gained 7.98, or 0.8 percent, to 1,033.37, while the Nasdaq composite rose 22.62, or 1.1 percent, to 2,060.39. Financials and commodities once again led the way.

It seems that with a combination of light volume and basic fundamentals following a 50% run up since the March lows, traders are prime for a pullback. But for now, with the dollar tanking, its too easy to short the dollar and long commodities.

Refinances Surge

The Mortgage Bankers Association said applications rose 17 percent for the week ending September 4th.; aided by interest rates flirting with record lows.

The Refinance Index increased 22.5 percent from the previous week, the biggest jump since mid-March. The average interest rate for 30-year, fixed-rate mortgages dropped to 5.02 percent from 5.15 percent, with points increasing to 1.23 from 1.09.The average interest rate for 15-year, fixed-rate mortgages fell to 4.45 percent from 4.57 percent, with points increasing to 1.13 from 0.85.

McDonald’s Sees Slowing Sales, However a Weak Dollar Will Make that Short Lived

McDonald’s Corp. (MCD), the world’s largest fast-food chain, said Wednesday sales in established restaurants rose 2.2 percent globally in August, the smallest monthly gain since February.

The world’s largest fast-food chain said sales at restaurants open at least 13 months, a key measurement that adjusts for the effects of expansion, rose a weak 1.7 percent in the U.S. and 3.5 percent in Europe. In the Asia Pacific, Middle East and Africa regions, the figure fell 0.5 percent.

The last time systemwide comparable sales were so low was in February, when the company said they rose 1.4 percent. The figure grew 4.3 percent in July.

The fast food chain has been a major beneficiary of the economic downturn, with their low priced value meals a major attraction as consumers close their wallets.