Housing Continues to Show a Mixed Picture, GBP Heads Towards Support

The major indices were put to the test yesterday, after a positive start turned into a mixed session. After jumping higher at the start of the session, the two major indices; the Dow Jones and S&P500 dropped into negative territory. Housing data and Factory orders were the culprits of yesterday’s session, both having an intraday effect.

Pending home sales dropped 16% in November, the sharpest decline since the National Association of Realtors started tracking the data, in 2001. The report broke a major 10 month rally, which had been associated with increasing home sales since February. Despite the negative housing data, which is clearly showing that the sector is still struggling, Factory Orders hit the board showing improvement. New Orders for manufactured goods rose 1.1% in November, compared to economists’ expectations of a 0.5% figure. According to the Federal Reserve Bank of Cleveland, nondefense capital goods excluding aircraft bounced in November by a whopping 3.6%, while shipments continued to show improvement, increasing by 1%.

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