On Wednesday Existing Home Sales data was published. Existing-home sales surged for the third straight month in November and reached their strongest pace in almost 11 years, according to the National Association of Realtors. All major regions except for the West saw a significant hike in sales activity last month. Total existing-home sales, jumped 5.6 percent to a seasonally adjusted annual rate of 5.81 million in November from an upwardly revised 5.50 million in October. After last month’s increase, sales are 3.8 percent higher than a year ago and are at their strongest pace since December 2006 (6.42 million).
Friday's session was marked by GDP and Unemployment Claims figures. Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the third quarter of 2017, according to the "third" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.1 percent. The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was 3.3 percent. With this third estimate for the third quarter, personal consumption expenditures increased less than previously estimated, but the general picture of economic growth remains the same.
In the week ending December 16, the advance figure for seasonally adjusted initial claims was 245,000, an increase of 20,000 from the previous week's unrevised level of 225,000. The 4-week moving average was 236,000, an increase of 1,250 from the previous week's unrevised average of 234,750. Claims taking procedures continue to be disrupted in the Virgin Islands. The claims taking process in Puerto Rico has still not returned to normal.
Friday brought Durable Goods Orders and New Home Sales data. Orders for all durable goods -- items meant to last at least three years -- increased 1.3 percent as bookings for commercial and military aircraft rebounded. Core capital goods orders advanced at an 18 percent annualized rate in the three months through November, while those shipments moved ahead at a 14.9 percent pace. The data indicate spending on equipment will provide more fuel for economic growth after a third-quarter contribution that was the most in two years.
The Commerce Department said on Friday new home sales jumped 17.5 percent to a seasonally adjusted annual rate of 733,000 units last month. That was the highest level since July 2007 and followed October’s downwardly revised sales pace of 624,000 units. New home sales surged 26.6 percent from a year ago. That together with last month’s surge in single-family homebuilding and sales of previously owned homes suggests the housing market is regaining momentum after stalling this year.
This week markets will be looking at:
CB Consumer Confidence (Wednesday 16:00)
Unemployment Claims (Thursday 14:30)
