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Economy grows and sales shrink {Market Report} December 3rd

Economy grows and sales shrink {Market Report} December 3rd
December 4, 2018 abryant

 

In case you haven’t heard . . .

 

 

Ever stopped to think and forgot to start again?

What happens if you get scared half to death twice?

The trouble with life is that there’s no background music.

You are what you eat. Avoid fruitcake.

 

Now The Market Report . . .

 

Recent comments by Fed Chair Jerome Powell have markets questioning if we’ll see policy rate increases in 2019, which could be good for mortgage rates.

Consumer spending increased by the most in 7 months in October. But underlying price pressures slowed, meaning inflation is less of a concern.

The economy grew 3.5% in the 3rd quarter, lower than the 2nd quarter’s 4.2% expansion. Still, corporate profits reached a 6-year high.

 

Despite moderation, September’s annual home price gains remain strong at 5.5%, as reported by Case-Shiller.

October’s pending home sales dropped 2.6% from the previous month. Sales were down 6.7% compared with October 2017, for the 10th month of annual declines.

New home sales also fell in October. However, data last week showed an increase in building activity. A larger supply of available homes could bring more sales.

 

“Get your facts first, then you can distort them as you please.”

– Mark Twain

 

This week’s potential market moving reports are:

 

Monday, December 3rd:          ISM Manufacturing Index, Construction Spending

Tuesday, December 4th:         Motor Vehicle Sales

Wednesday, December 5th:   MBA Mortgage Applications, ADP Employment Report

Thursday, December 6th:       First Time Jobless Claims, Factory Orders

Friday, December 7th:             National Unemployment, Non-Farm Payroll Report

 

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