Last week, the debt crisis in Europe triggered volatility in the US markets. Investors also kept an eye on domestic news and the Federal Reserve initiated a $400 billion stimulus program to bring down mortgage and other loan rates to help spur the economy.
Housing starts fell five percent in August, but building permits—a sign of future building activity—rose more than three percent. In the week ahead, we expect quite a few economic reports.
We will gain insight on the economy with the final estimate of second quarter GDP, which looks at all the goods and services produced from April through June. The second estimate showed the economy grew one percent—much slower than previously thought as businesses kept inventory levels low.
We will check on housing with the July case-shiller home price index report, which tracks price changes in 20 metro areas. The spring buying season led to a one percent increase in June. This was the third straight month of improvement with Chicago, Minneapolis and Boston showing some of the biggest gains.
How do you feel about the economy? We will find out with the September consumer confidence report. In August, confidence fell to its lowest level in more than two years with a 44 point five reading, as consumers were fearful of another recession. Consumer confidence is a gauge of consumer spending.
That is your CNBC market look ahead for TheGrio.com.