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STOCKS RALLY AGAIN: Here's What You Need To Know
Markets continued their epic bull run and closed at a new post-crisis high.
First the scoreboard:
Dow: 13,895, +70.6, +0.5 percent
S&P 500: 1,502, +8.1, +0.5 percent
NASDAQ: 3,149, +19.3, +0.6 percent
And now the top stories:
New home sales unexpectedly fell 7.3 percent to 369k in December. Economists were looking for a reading of 385k. However, it's worth noting that the November number was revised up to 398k. So the report was somewhat mixed.
However, some economists are increasingly worried about a potential supply glut in the market for new homes. " The worry, though, is that with the pace of new residential building activity now approaching 1 million units, the impending surge in new homes supply could create a problem for this segment of the housing market, unless there is a commensurate increase in demand," wrote TD Securities' Millan Mulraine.
Business Insider's Henry Blodget recently spoke to economist Robert Shiller who was reluctant to confirm that housing would boom again. "I think that we might have [hit bottom], but my biggest sense is that probably nothing dramatic happens either way," he said. "If the Pulsenomics survey is right, and it’s up between 1 and 2 percent real, that’s plausible to me. But also down 1 or 2 percent real, that’s plausible. I’m sorry I don’t have a more precise forecast."
Shiller also told Blodget that we can expect low returns in the stock market. "I think predicting something like 4 percent real for the stock market, as opposed to 7 or 8 percent historically," he said. "And that looks pretty good."
Don't Miss: WE COULD BE HERE: The '1994 Moment' That's Keeping More And More Bond Traders Awake At Night >
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