Midday Market Update: Pending Home Sales Lift ETFs
December 1st at 10:00am by Tom Lydon
The October pending home sales report notched its ninth consecutive gain, giving stocks and exchange traded funds (ETFs) a nice boost on the first trading day of December.
Pending home sales rose 3.7% in October as more homebuyers took advantage of tax credits that originally were set to expire at the end of November. It’s the highest reading since March 2006, and 32% higher than a year ago, reports J.W. Elphinstone for the Associated Press. iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) is up about 1.7% this morning.
Construction spending also rose in October, the first gain in six months. A jump in home building helped offset weakness in non-residential construction, says Martin Crutsinger for the Associated Press. Manufacturing in the United States has also posted its fourth straight monthly gain. The Institute for Supply Management’s manufacturing index dipped to 53.6, but readings above 50 are indicative of expansion.
The U.S. dollar dipped this morning, which in turn led to a new record price for gold at $1,198.70 an ounce. SPDR Gold Shares (NYSEArca: GLD) is up about 1.5% this morning. For more stories about gold, visit our gold category.
