(As of 7:19 am PST)
All 3 major indices are higher
by 0.25% this morning after some strong economic data showed signs of
improvement in the housing and labor markets.
The Commerce department reported new housing starts soared 12.1% in
December, beating estimates and reaching levels not seen since 2008. Also, building permits for future construction,
a good determinate of future demand, rose in Dec. to the highest level in 4
years. Homebuilder confidence hit a 6
year high reinforcing the momentum we’ve been seeing in the housing market
recovery the past year. Jobless claims
dropped significantly last week, likely due to holiday hiring, but still a
positive sign. Corporate earnings
continue to come in mixed. Bank of
America and Citigroup results disappointed dragging financial stocks lower,
while EBay shares rose 3% on positive earnings.
In international news, we are just hearing reports of a militant attack at
a natural gas facility in Algeria that killed 50 people. Several Americans along with foreign workers
were taken hostage and then killed during a rescue attempt gone wrong. More details to come. The attack has caused oil prices to surge
this morning. Gold is down and interest
rates are up slightly. There appears to
be some positive momentum in the markets today as the economic picture
continues to improve.
