Schedule of economic reports influencing housing sector:
- The Conference Board's survey on consumer confidence for November - The index, which has been declining since August, is expected to fall further to 91.6 in November from 95.6 in October, according to a Reuters poll of economists.
- Existing Home sales for October - expected to slow to a seasonally adjusted annual rate of 5.00 million units in October from 5.04 million in September
- The Beige Book report on business activity in the 12 Federal Reserve bank districts. Traders will look a the data for clues as to whether the Fed will cut interest rates again at its next policy meeting on December 11.
- Durable Goods Orders for October - the consensus sees no change from September, when orders fell 1.7 percent.
- GDP Growth in the third quarter – according to the median forecast in the Reuters poll, the gross domestic product grew at a 4.8 percent annualized pace during Q3 of 2007. Initially, third-quarter GDP was estimated at 3.9 percent.
- New Home Sales for October– Are expected to decline to an annual rate of 750,000 units in October from 770,000 in September.
- Core Personal Consumption Expenditures price index for October. Economists expect Core CPI to have gained 0.2 percent in October, the same as in September.
- Personal Income for October - the forecast is for an increase of 0.4 percent in incomes in October after a similar increase in September
- Personal spending for October - spending is seen rising 0.3 percent in October, in line with the rise in the previous month.
- Construction spending for October - is expected to show a decline of 0.2 percent from the previous month
- The Chicago Purchasing Managers Survey – PMI is forecast to show a rise to 50.3 in November from 49.7 in October. Survey readings above 50 indicate expansion and readings below that level show contraction.
In addition, during this week, several credit card groups will have reports on spending at the start of the Christmas shopping season for an early tip-off as to how the consumer is bearing up.
Price action over the last week
For the past week, the Dow Jones industrial average fell 1.5 percent, the Standard & Poor's 500 Index slipped 1.2 percent and the Nasdaq Composite Index dropped 1.5 percent. For the year so far, though, the three major U.S. stock indexes remain in positive territory. The blue-chip Dow average is up 4.2 percent, while the S&P 500 is up 1.6 percent and the Nasdaq is up 7.5 percent for the year.