February 28, 2018
The second estimate for the fourth-quarter, at a solid 2.5 percent, was very similar to the first, showing sizable consumer and business strength that was held back in the GDP account by rising imports. In a look forward, pending home sales fell sharply and are pointing to another month of weakness for existing home sales which are being held down by lack of available homes for sale and also rising mortgage rates.
Volatility is strong right now in the stock market as the Dow, after falling 1.2 percent yesterday and gaining 1.6 percent on Monday, dipped 1.5 percent to 25,029. Money moved back into the bond market where the 10-year Treasury yield edged lower to 2.86 percent. Oil fell $1-1/2 to $61.50 following a build in weekly inventories while gold held steady near $1,320. The dollar index rose 0.3 percent to 90.62.