For the fourth consecutive month, sales of brand-new homes dropped a surprising 2.2% to a record low. Many analysts expected home sales to increase by nearly that much. Naturally, it further underscores the fact that the recovery in real estate will be slow and spotty. iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) hasn’t reacted much so far today, trading flat. [What’s Inside the Homebuilder ETFs?]
In better news is durable goods, which rose 0.9% last month. Durable goods include machinery, aircraft, autos and electronics. The increase was the third one in four months. Breaking it down, machinery and civilian aircraft orders were up, while autos, defense goods and electronics orders declined. Rydex S&P Equal Weight Industrials (NYSEArca: RGI) is down 0.4% this morning. [6 ETFs Obama’s Jobs Bill May Boost.]
Japan could soon get a boost. The stagnant nation today passed a $1 trillion budget aimed squarely at supporting the economy. The government also made a surprise move and said it would keeps its stake in the country’s postal baking system. The system has been blamed for inefficiencies and distortions in Japan. iShares MSCI Japan (NYSEArca: EWJ) is down 1.5% this morning. [Top 10 ETFs Investors Are Tading.]
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.