A glowing report on home sales for the month of October sent stocks and exchange traded funds (ETFs) soaring this morning. It also started the week off on the right foot, renewing optimism about the economy’s overall direction.
Home sales from September to October jumped a whopping 10.1%, far outpacing expectations. Sales are now at their highest levels in two and a half years, reports Alan Zibel for the Associated Press. Much of the credit is being given to the tax credit for first-time homebuyers. The credit was set to expire on Nov. 30, but it was renewed and broadened earlier this month. (How to play the extension). iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) is trading about 1.5% this morning.
After the dollar mostly gained last week, it’s kicking off this weak by weakening slightly to just below $1.50 against the euro. The dollar’s weakness has been a boon to the stock market, says Javier C. Hernandez for The New York Times. The record-low interest rates in the United States has lured skittish investors back, hoping for big returns. PowerShares DB U.S. Dollar Index Bearish (NYSEArca: UDN) is up nearly 1% this morning.
A weaker dollar is also a boon for gold, which touched a record $1,170.10 an ounce in trading. If gold closes higher today, it will be the first time that futures have risen in 15 out of 16 trading sessions. SPDR Gold Shares (NYSEArca: GLD) is up about 1.6% this morning. (Can the rally last?)
For more stories about gold ETFs, visit our precious metals category.
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.