December 22, 2017
The new home market is accelerating sharply going into year end, posting very strong sales gains in November that follow gains in other housing data. Consumer spending did rise a solid 0.6 percent in November but income was soft at only a 0.3 percent gain. Durable goods showed strength for aircraft and vehicles but not for capital goods which were flat.
The Dow ended the week with a small loss but a 0.4 percent weekly gain to 24.754. Treasuries had a bad week amid softening safe-haven demand together with the prospect of rising Treasury issuance, the likely result of the big tax cut. The 10-year Treasury yield rose 14 basis points in the week to 2.35 percent with the 2-year up 6 basis points to 1.90 percent.