January 25, 2018
New home sales did slow in December but levels remain very solid and point to strength for the residential component of tomorrow's fourth-quarter GDP report. Jobless claims were also released and did back up but here too levels are very favorable, specifically in this case for the January employment report which will be next week's economic highlight.
Stocks were mixed though the Dow, boosted by gains for Boeing and 3M, did post a solid 0.5 percent gain to a new record at 26,392. After two days of heavy selling, the dollar index edged only fractionally lower to 89.20. Demand for bonds picked back up with the 10-year Treasury yield down 3 basis points to 2.62 percent. And oil, after two days of heavy buying, eased nearly 50 cents and is back near $65. Gold gave up half of yesterday's solid gain, losing $10 to just over $1,350.