Before ringing in the new year, investors wrap up 2010 trading and await reports on the economy, housing and consumer confidence.
We’ll gain insight on the economy with the December Chicago PMI report, which looks at business activity in the Midwest. Activity surprised to the upside, growing at a faster pace with a reading of 62.5 driven by new orders and jobs.
We’ll get two reads on the housing market, starting with the Case Shiller home price index report for October. The index tracks price changes in twenty metro areas such as Charlotte, Tampa and Chicago. In September, home prices declined 0.7 of one percent and may signal a threat to the economic recovery. We’ll also get the November pending home sales report— which looks at contract activity. In October contracts increased by 10.4 percent.
How do you feel about the economy? We’ll find out with the December consumer confidence report. In November, confidence surged to its highest level in five months. with a 54.1 reading, as Americans felt more hopeful about the economy. Consumer confidence is an important gauge for consumer spending.