Stocks snapped a two day winning streak as the Dow fell 37 points on light trading volume to end the session at 24,754.
CNBC released its Christmas spending survey which showed holiday spending is set to hit an all-time high in the history of the survey which is only 12 years old. The previous record set last year was $702 per person but current projections show that spending will top $900 per person. The survey also found that 50% of respondents feel the economy is in good to excellent shape.
The US Commerce Dept. said that single family homebuilding jumped 5.3% in November which is the highest level since 2007. Builder confidence also increased five points in December to a reading of 74.
As the US tax overhaul bill gets closer to becoming a reality, the 10 year Treasury bond yield has spiked up in what is now the biggest two day move of the year. Some gurus had been worried that the spread betwixt the 2 year and the 10 year yields had narrowed to about a half a point which, in the past, has typically signaled a recession. With the recent spike however the spread has started to widen and this could be an early indicator of accelerating growth which might ease fears of a possible recession. We shall see how this plays out as we await the final word on tax reform.