The Commerce Department announced early this morning that October's Housing Starts jumped 13.7%, exceeding forecasts by a wide margin. A secondary reading that tracks new permits issued, giving us an indication of future groundbreakings, also came in higher than expected. The data points towards a strengthening new home portion of the housing sector, making the data bad news for bonds and mortgage rates. Fortunately, this is not considered to be a highly important report, minimizing its impact on today's trading.
Next week will be shortened due to the Thanksgiving holiday but still has a couple of economic reports and other items that we need to watch. Most of the data being released is considered moderately important but there is also one report that does draw plenty of attention in addition to the minutes from the most recent FOMC meeting.
There is a minor release set for Monday morning (Leading Economic Indicators) to start the week, but it shouldn't be of much concern. Look for details on all of next week's activities and holiday calendar in Sunday evening's weekly preview.
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