4/18/2011 – theGrio and CNBC Market Update
VIDEO - In February sales of previously owned homes fell 9.6 percent to their lowest level in nearly 9 years -- snapping three months of gains...
The first quarter earnings season kicked off last week with reports from Alcoa, Bank of America, and Google. In economic news small business optimism fell in March, but hiring was a bright spot. New claims for jobless benefits rose by 27,000 last week, the first increase in three weeks. And consumer prices increased slightly in March, driven by higher food and gas prices. In the week ahead, investors expect earnings reports from American Express, Xerox and Apple as well as housing and economic data.
We’ll get a read on the economy with the March housing starts report. In February new home construction fell by 22 and half percent to their lowest level in two years. Housing starts have been weighed down by falling home prices and less demand. Building permits – a gauge of future building activity – also declined 8.2 percent.
We also expect the March existing home sales report. In February sales of previously owned homes fell 9.6 percent to their lowest level in nearly 9 years – snapping three months of gains. The median home price also dropped 5.2 percent to $156,000 the lowest level since 2002.
Is the economy improving? We’ll find out with the March leading indicators report – which tracks activity like building permit requests, new claims for jobless benefits, and stock prices – The February report showed a nearly 1 percent gain, boosted by fewer claims for unemployment benefits.
