On a shortened holiday trading day, economic reports revealed consumers cut spending and increased savings in November, but stocks and exchange traded funds (ETFs) were expecting it and responded positively.
Consumer spending was down for the month, but not as much as feared, only 0.6%. Concerns with the stock market, housing market, and increase in unemployment helped keep consumers from spending. While they weren’t spending, their savings increased, sending the saving rate to 2.8%, up from 2.4% in October, reports Jeff Bater with The Wall Street Journal.
Orders for durable goods decreased by 1% in November, less than expected.
Personal income fell last month 0.2%, which can be expected as the claims for unemployment insurance rose last week to a 26-year high.
Record low interest rates sent potential borrowers out to increase mortgage applications to the highest level in over five years, Reuters reports. Applications were up 48% last week and included both purchase and refinance loans. Borrowing costs on a 30-year fixed-rate mortgage averaged 5.04%.
Oil prices were trading lower today after an unexpected decline in crude inventories, but a big increase in supplies of refined fuels. Oil was down to $37.68 a barrel, according to CNN Money.
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