UPDATE – April 5, 2012

HOUSING MARKET COOLS DOWN IN February

Nationally, home sales took a step back last month. Last week, the National Association of Realtors reported a 0.9% drop in residential resales in February. The federal government subsequently announced a 1.6% slip in new home purchases last month, although new home prices rose by over 8.0%. The year-over-year numbers are better: existing home sales have jumped 8.8% in the last 12 months, and new home sales have picked up by 11.4%. Housing starts were down 1.1% in February from January’s 4-year high, but building permits were up 5.1% for the month.^1,2

INITIAL CLAIMS HIT A NEW 4-YEAR LOW 
According to the Labor Department, claims fell by 5,000 to a seasonally adjusted 348,000 for the week ending March 17. This is the smallest amount since March 2008.³

LEADING INDICATORS MOVE NORTH AGAIN
The Conference Board’s monthly index rose 0.7% for February, with reduced jobless claims and the interest rate spread exerting the most influence. Eight of the index’s ten indicators were up for the month.³

BULLS PRESS PAUSE BUTTON

Stocks pulled back for the week as anxieties over subpar foreign manufacturing indices inspired some profit-taking. A new concern surfaced Friday: Reuters said Iran’s oil exports had dropped 14% this month. The S&P 500 retreated 0.50% last week to 1,397.11 Friday. The DJIA lost 1.15% on the week to settle Friday at 13,080.73, while the NASDAQ advanced 0.41% in five days to wrap up Friday at 3,067.92. Gold ended the week at $1,662.40 an ounce, oil at $106.87 a barrel. Unleaded gasoline averaged $3.89 a gallon nationally in AAA’s newest price survey.^4,5

Citations.

1 – www.washingtonpost.com/business/economy/new-home-sales-fell-in-february-but-prices-rose/2012/03/23/gIQA92X8VS_story.html [3/23/12]

2 – business.time.com/2012/03/20/us-builders-start-fewer-homes-but-permits-jump/ [3/20/12]

3 – www.nasdaq.com/article/us-jobless-claims-fall-in-week-indicators-rise-20120322-01286 [3/22/12]

4 – money.msn.com/market-news/post.aspx?post=c38964a6-60ee-42a2-8b4e-cd45ed26f39d [3/23/12]

5 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F23%2F11&x=0&y=0 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F23%2F11&x=0&y=0 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F23%2F11&x=0&y=0 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F23%2F07&x=0&y=0 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F23%2F07&x=0&y=0 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F23%2F07&x=0&y=0 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F22%2F02&x=0&y=0 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F22%2F02&x=0&y=0 [3/23/12]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F22%2F02&x=0&y=0 [3/23/12]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/23/12]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/23/12]

8 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]