Two pieces of data will be affecting the market today; new housing starts for April and the large inventory of unsold older homes throughout the country.
Housing starts for April are expected to be higher. The backlog of unsold homes is quite extensive and is weighing on the housing market. This backlog includes homes that have been through or are in foreclosure.
The market will probably respond to the good (housing starts) and bad (unsold inventory) news according to which data is stronger.
Most see the housing market as being stuck in the mud and like other recent economic indicators at least it is not accelerating its pace of decline.
The European markets are up so can we assume that Wall Street will follow - absolutely not...
Reuters: Stock index futures point to higher open
At 8:30 a.m. EDT the Commerce Department releases housing starts and permits for April.Reuters: U.S. home starts seen rising to 520,000 units in April
"The glut of homes is so large that a typical early-cycle rebound in homebuilding looks far out of reach."
"...The huge overhang of inventory, much of which is distressed properties, must be cleared. This will keep downward pressure on home prices."
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