Investors kept a keen eye on domestic news last week. The fed left its key interest rate, which affects mortgage, credit card and student loan rates unchanged, and will keep them low until 2013. Consumer prices ticked up slightly in November due to higher food prices and new claims for jobless benefits fell by 19,000 to 366,000—the lowest level since May 2008 and signaling a recovery in the labor market. In the week ahead, we expect key economic data on GDP, housing and income.
We will check the pulse of the economy with the final estimate of third quarter GDP, which looks at all the goods and services produced from July through September. The second estimate showed the economy grew by two percent, quite a bit slower than previously expected, but still a sharp increase from the previous quarter.
We will check on housing with the November housing starts report. In October, new construction fell overall by three tenths of one percent, much less as expected. But, single family homes—the biggest component—grew nearly four percent. And building permits—a gauge of future building activity—rebounded sharply from the previous month—up nearly 11 percent.
We will gain insight on consumer finances with the personal income and spending report for November. In October, wages rose four tenths of one percent—more than expected, but spending edged up just a tad after a big jump from the previous month.
And that is your CNBC market look ahead for The Grio.com.