November 28, 2017
Sharply mixed economic news is Tuesday's story. In what will pull down fourth-quarter GDP, the trade deficit in goods, led again by increasing imports of consumer products, jumped in October while early data on October inventories fell. Price data on housing are also mixed with FHFA slowing but Case-Shiller accelerating and both converging at a 6 percent annual rate for home price appreciation. Tilting the day's mix to the plus side is another standout consumer conference report where labor market assessments continue their rare climb.
Other headlines include testimony from incoming Fed Chair Jerome Powell who, if confirmed by the Senate, intends to extend the Fed's guidance for a series of coming rate hikes along with ordered unwinding of the central bank's $4.5 trillion balance sheet. And perhaps the biggest headline in the making is President Trump's tax package which continues to make its way through Congress.
The Dow jumped 1.1 percent to a new record at 23,836. Interest rates were little changed but the dollar index showed life, up 0.4 percent to 93.23.