The markets and exchange traded funds (ETFs) are wavering between positive and negative space after a report on April’s existing home sales. Existing home sales rose 2.9% in April, reports Alan Zibel for the Associated Press. The momentum seems to have come from buyers who wanted to take advantage of bargain-basement prices that are 15.4% below where they were a year ago.
Homes in the higher end of the market – $750,000 and above – aren’t selling, though. The number of unsold homes across the spectrum right now is at a 10-month supply at the current sales price.
- iShares Dow Jones U.S. Real Estate (IYR): down 8.4% year-to-date
Positive news about the recession emerged today: 90% of economists predict that it’s going to end this year, although don’t expect it to be a smooth ride. Most think that it will end in the third quarter, while the rest forecast an end in the fourth quarter, says Jeannine Aversa for the Associated Press.
Even though the economy itself is expected to rebound, forecasters believe that unemployment will continue to be a problem. Economists also state that recoveries after financial crises tend to be slower, so companies won’t be rushing to hire until they feel like they’re on firmer footing.
Bankruptcy by General Motors (GM) appears all but certain after the carmaker couldn’t persuade bondholders to trade in debt for equity in a new company, report Linda Sandler and Caroline Salas for Bloomberg. The 90% approval required of bondholders expired last night.
Chrysler’s future is also up in the air as it goes to court and asks a bankruptcy judge for permission to sell the bulk of its assets to a group lead by Fiat, says Bree Fowler for the Associated Press. If there’s no deal by June 15, Fiat could back out.
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.