The holiday rally is extending as equities look to continue climbing for a seventh consecutive day. One hours before the open, S&P 500 futures are up 3.25 points to 1,126.25.
Commodities are mixed with copper hitting a 15-month high ― $7,250 a metric ton at 10:25 a.m. on the London Metal Exchange ― as miners went on strike in England. Meantime, WTI Crude oil is down 9 cents to $78.68 per barrel and Gold is $2.53 lower to $1104.77 per ounce.
Tuesday is one of the busier days of this holiday shortened week. The nation’s key measure of home prices is released half an hour before the session begins, and an hour later markets will see if consumer confidence is beginning to rise as the New Year gets underway.
Key Releases Today:
9:00 ― Economists anticipate that home prices rose for the sixth straight month in October, as recorded by the S&P Case-Shiller Home Price Index. The half-year rise follows a thirty-three month decline following the bursting of the housing bubble that caused the financial crisis.
“Demand for homes is strengthening and inventories are shrinking,” said forecasters at BBVA. “Low, stable home prices, favorable mortgage rates, increasing affordability levels and the tax credit for home buyers will continue to support demand and prices.”
10:00 ― Thanks in part to the holidays Consumer Confidence is expected to to move up 3.5 points to 53.0 in December, as recorded by the Conference Board. But don’t get too optimistic, as even with that gain the consumer outlook is still one point below the score in August.
“Rising incomes, diminishing job losses, a continuing stock market rally, and widespread price discounting are bringing some holiday cheer to consumers,” said economists at IHS Global Insight. “Although recent winter storms and cold weather could hurt some chain store retailers this December – there should be some offsetting sales increases through the direct online channels - the recovery in consumer spending should continue.”
“The worst of the recession appears to be over for the consumer,” added analysts at BBVA. “While the trend in consumer confidence has remained flat over the past seven months, reflecting households’ uncertainty about the path of recovery, confidence should begin to rise in the next several months, albeit at a slow pace.”
The Conference Board index follows the Reuters/University of Michigan consumer sentiment report from last week, which jumped 5.1 points to end the year at 72.5.
- Treasury Auctions:
- 11:30 ― 4-Week Bills
- 1:00 ― 5-Year Notes
