Tuesday, August 19, 2014

Economic Journal - Tuesday, 8/19/2014

(As of 7:15 am PST)
 
Stocks are off to another great start this morning as upbeat economic reports are fueling the positive trade.  July housing starts came in better than expected with construction on new US homes rising 15.7% in July.  June’s decline in new construction was also revised upward.  Building permits, a sign of future demand, also rose sharply, up 8.1% from June.  Both reports indicate a recovering housing market after a slowdown earlier in the year.  In other economic news, a report on US consumer prices showed prices rising by a scant 0.1%, in line with expectations.  International markets are higher with Asian indexes finishing the day strong and European stocks making a push for gains in the final hours of trading.  Gold and oil are both lower as are interest rates.  Attention will turn for the rest of the week to the Federal Reserve’s release of the latest FOMC minutes and the Fed’s annual meeting at Jackson Hole.  Investors will be looking for communication around monetary policy and the Fed’s plans for its first rate hike.

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