The Dow was up 23 points after a seesaw day before closing at 19,121 on higher trading volume. Real-estate stocks were market leaders.
The Case-Shiller Corelogic Housing index surpassed it’s old high set in July of 2006 as the nation’s’ housing prices grew 5.5% in September YOY. The rise in prices is due to tight supplies and rising demand. David “Wolf” Blitzer, Managing Director of the CSCL Index Committee noted that while the index is at a high, cities that experienced the biggest housing booms (Miami, Tampa, Phoenix and Vegas) are still below their all-time highs which means we could see average national prices continue to break new ground.
The Commerce Dept. reported that the US economy expanded at a 3.2% annual rate in the third quarter making it the strongest growth since Q2 in 2014. GDP grew by 3.2% beating estimates calling for a 3.1% rate and well above the initial reading of 2.9%. Consumer spending rose at a 2.8% pace and the Consumer Confidence Index shot up 8.5 points to 107.1. This is the highest reading since 2007 and reflects post-election sentiment whereby consumers are more upbeat about current and future conditions for jobs and business prospects.
Oil prices fell about 3.9% thanks to OPEC dysfunction heading into the meeting in Vienna. Apparently Russia backed out of the meeting and both Saudi Arabia and Iran are not Seeing Eye to eye. Some gurus are saying that if a production cut is not reached then oil could trade to $40 or lower.