More economic data is pouring in this morning, the first of the second quarter, and the markets and exchange traded funds (ETFs) appear happy with “better than expected.”
The biggest news hails from the real estate and construction sectors:
- Pending home sales in February rebounded from a record low, reports Madlen Read for the Associated Press
- Construction spending fell in February for the fifth consecutive month, but at a slower pace than in January
This follows up Tuesday’s news about home prices continuing to fall around the country.
- iShares Dow Jones U.S. Home Construction (ITB): up nearly 3% midday
It wasn’t all rosy news, through: Private sector employment dropped by 742,000 in March. The number was larger than anticipated, and it bodes ill for the Labor Department’s Friday report on nationwide job cuts in March.
In auto industry news, President Barack Obama said he feels that bankruptcy is the best option for General Motors (GM), which may ease into a “controlled” bankruptcy. The plan would involve persuading some creditors to agree to a plan that would split the company in two, report Michael J. de la Merced and Jonathan D. Glater for The New York Times.
Obama is also requiring that Chrysler and Fiat join forces before Chrysler can receive another multibillion-dollar loan to save it from bankruptcy, reports Eric Sylvers for The New York Times. The deadline for a deal is April 30.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.