Stocks Fall Ahead of Jobs Data, Earnings; U.S. Dollar Gains on Euro; Home Prices at Seven-Year High
Stocks fell today, erasing its earlier gains, as the S&P 500 failed to hold above its average level from the past 50 days and as investors awaited a monthly jobs report and the start of corporate earnings. “The market is trying to find some ability to hold in there,” Jason Cooper, in South Bend, Indiana, at 1st Source Investment Advisors, said. “It’s going to take some actual data to come in to at least reassure investors that the economy is doing OK and people are getting jobs. Corporate America is going to be the important one right now. The Fed has pretty much said what they have to say and not rock the boat any more.”
U.S. Dollar Gains on Euro (Reuters)
The dollar trumped a broad swath of currencies today as a string of solid economic data gave more credence to the assumption that the Federal Reserve will scale back its stimulus sooner than expected. “Our sense is that the Fed comments and recent economic data are still consistent with the tapering message and that’s positive for the dollar,” said Vassili Serebriakov, currency strategist at BNP Paribas in New York.
Home prices flew up to 12.2 percent in May from last year, soaring to its highest gain since seven years ago — another strong indicator that the housing market is regaining traction. Specifically, home prices in 48 states rose from a year ago, while home prices fell only in two states: Delaware and Alabama. What is the cause for this resurgence in the housing industry? According to CoreLogic, steady hiring and low mortgage rates have encouraged more Americans to buy homes, and greater demand with a limited number of homes for sale and fewer foreclosures have pushed prices higher.