Investors had several economic reports to digest last week…including two positive reports on housing…new home sales jumped 7. 6 percent in may – to its highest level in a year…while home prices rose 1.3 percent in April — its first increase in seven months — signaling a slowly improving housing market. But consumer confidence — a gauge of consumer spending — fell in June to a 62 reading — its lowest level since January….in the week ahead, investors await data on jobs, manufacturing and auto sales.
Where are the jobs? We’ll find out with the June employment report. In May, the unemployment rate rose to 8.2 percent as only 69-thousand jobs were created..construction posted the biggest loss, while manufacturing showed the biggest gain… African-American unemployment rose to 13 point 6 percent, however, black teen unemployment declined to 36.5 percent, but remains by far the highest of any group.
And speaking of jobs..we’ll get a read on manufacturing with the June report from the institute for supply management. In may production growth slowed down a bit – posting a 53. 5 reading -but new orders rose to its highest level in more than a year.
We’ll check the pulse of the auto sector with the June auto sales report. In May auto sales fell 4 percent overall driven by a decline in car sales. But on a positive note, General Motors sold more than 245,000 cars and trucks — it’s highest monthly total since august 2009 when the government sponsored the cash for clunkers rebate program.