New home sales weakened in October despite builders offering price discounts and interest rate concessions. Even with those incentives, mortgage rates with an eight handle caused many potential homeowners to be priced out of the market.<\/p>\n\n\n\n
October\u2019s seasonally adjusted annualized units (SAAU) of 679,000 missed expectations for 723,000. The pace of transactions declined 5.6% month-over-month (m\/m), with September\u2019s figure revised to 759,000 SAAU. On a favorable note, sales in the Northeast and South climbed 13.2% and 2.1% m\/m. The West and Midwestern regions performed poorly though, with transactions dropping 23.3% and 16.4%. Furthermore, median and average prices dropped 3.1% and 5.5% m\/m. On a year-over-year (y\/y) basis, median and average price levels dropped 17.6% and 10.4%.<\/p>\n\n\n\n Markets are mixed as investors bought the dip in stocks following this morning\u2019s real estate data, which was released intraday at 10:00 am Eastern Time. Softer data also pushed yields lower simultaneously. Most major U.S. equity indices are lower, however, as the Russell 2000, Dow Jones Industrial and S&P 500 indices drop by 0.4%, 0.1% and 0.1%. The Nasdaq Composite Index is higher though, as market players scoop up shares of Amazon on holiday shopping optimism. The Nasdaq is up 0.1% while Amazon is higher by 1.4%. Beneath the surface though, there\u2019s some evidence that the recent rally has run its course, with cyclicals getting punished due to weaker economic prospects. Sectoral breadth is quite terrible, with all sectors lower minus technology, real estate and consumer discretionary. In fixed-income land, yields on the 2- and 10-year Treasury maturities are down 3 and 4 basis points to 4.93% and 4.43% as investors dial up Fed rate cut expectations. Meanwhile, the dollar is near the flatline as the greenback gains versus its Canadian counterpart, the euro and the yuan. The U.S. currency is higher relative to the yen, franc, pound sterling and Aussie dollar though.<\/p>\n\n\n\n Oil prices dropped nearly $1 per barrel this morning after recording their first weekly gain in five weeks. WTI crude has recovered since though, with prices now higher on the session by 0.5% or $0.35 to $75.47 per barrel. After four weeks of declines, oil prices climbed last week on speculation that Riyadh and Moscow would extend production cuts through the early portion of next year and that OPEC + members might strike an agreement to further curtail output. News last week that the cartel had postponed a meeting to November 30 that was intended to determine production levels caused prices to soften. The postponement was attributed to disagreements regarding production quantities for Africa. Unnamed sources, however, say that OPEC + has moved closer to striking an agreement, according to Reuters. Other factors contributing to softening prices include higher-than-expected crude stockpiles in the U.S., reports that Abu Dhabi might increase exports and efforts by Baghdad to resume exports through Ankara. Additionally, the International Energy Agency has reported that supply could outpace demand in 2024.<\/p>\n\n\n\n Black Friday data doesn\u2019t depict the strength of consumer spending during the entirety of the holiday season, so we will carefully assess more shopping information as it becomes available in the coming days. Additionally, tomorrow\u2019s Consumer Confidence report and Thursday\u2019s Consumer Spending data will provide important insights into the health of Americans\u2019 budgets while Friday\u2019s ISM Manufacturing release, which includes new order and inventory data, will offer a glimpse of retailers\u2019 expectations for consumer spending. Wednesday\u2019s third quarter GDP revision will also provide some details. The week wraps up with incoming data potentially influencing the tone of Federal Reserve Chairman Jerome Powell\u2019s presentation. If he dishes out dovish comments, investors may finish the week by enthusiastically stocking up on equities and bonds. Hopefully, protesters will sit out Powell\u2019s presentation, unlike a recent event during which he told ballroom ushers to shut the door to keep disruptors at bay. While the event may have influenced his mood, Powell refused to close another door\u2014the door on the possibility of additional rate hikes. If he maintains that position, investors who are expecting rate cuts as early as March are likely to be disappointed. <\/p>\n\n\n\n Visit\u202fTraders\u2019 Academy\u202fto Learn More About New Home Sales and Other Economic Indicators.<\/p>\n","protected":false},"excerpt":{"rendered":" Markets firmed up this morning following lighter-than-expected home sales data. While real estate and other rate-sensitive sectors of the economy are slowing, Black Friday and Cyber Monday events are providing investors with some optimism regarding consumer spending. <\/p>\n","protected":false},"author":903,"featured_media":8060,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[58,146,147,8,12,148,7],"tags":[289,743,291,744],"contributors-categories":[370],"class_list":["post-8058","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ibkr-economic-landscape","category-macro","category-north-america","category-region","category-securities","category-text-articles","category-traders-insight","tag-economic-data","tag-economics","tag-macro","tag-us-data","contributors-categories-ibkr-macroeconomics"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n![\"\"](\"https:\/\/ibkrcampusdev.wpengine.com\/wp-content\/uploads\/sites\/3\/2023\/11\/Picture1-8.png\")
<\/figure>\n\n\n\nMarkets Strengthen on Weaker Data<\/strong><\/h2>\n\n\n\n
OPEC + Meeting in Focus<\/strong><\/h2>\n\n\n\n
Holiday Shopping Robust, So Far<\/strong><\/h2>\n\n\n\n