As 2024 concludes, Wall Street anticipates a holiday-shortened week with significant economic indicators poised to influence market sentiment. Key data releases include the Pending Home Sales Index, the Case-Shiller National Home Price Index, and the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI).
Source:- bbc news
Pending Home Sales Index
On Monday, December 30, the National Association of Realtors will publish the Pending Home Sales Index for November. This forward-looking indicator, based on contract signings, is expected to show a 7.9% year-over-year increase from November 2023’s levels. The index reached a record low this past summer due to elevated mortgage rates and the “lock-in effect,” where existing homeowners are disincentivized to sell because their current mortgage rates are much lower than prevailing rates.
Source:- bbc news
Case-Shiller National Home Price Index
On Tuesday, December 31, S&P CoreLogic will release the Case-Shiller National Home Price Index for October. In September, home prices rose 3.89% year-over-year, marking the seventh consecutive month of decelerating growth. This trend reflects a cooling housing market, influenced by affordability challenges and changing buyer demand.
ISM Manufacturing PMI
On Friday, January 3, the ISM will release its Manufacturing PMI for December. Economists forecast a reading of 48.3, consistent with November’s data. A PMI below 50 indicates contraction in the manufacturing sector, which has experienced weakness, with 24 of the past 25 monthly readings below the expansionary threshold. citeturn0search4
Market Implications
These economic indicators will provide insights into the health of the housing and manufacturing sectors, offering investors guidance on potential market movements. The housing market data will shed light on buyer activity and price trends, while the manufacturing PMI will indicate the sector’s performance amid ongoing economic conditions.
It’s important to note that equity and fixed-income markets will be closed on Wednesday, January 1, in observance of New Year’s Day. Additionally, there are no major quarterly earnings reports scheduled for this week, with the fourth-quarter earnings season set to commence on January 15. citeturn0search4
Investors should monitor these data releases to assess their potential impact on market dynamics as the new year begins.
navlistKey Economic Indicators to Watch This Weekturn0news9,turn0news10,turn0news11
Share your views in the comments
