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Dow Futures contract was up 90 points, or 0.2%, the S&P 500 Futures were up 20 points, or 0.4%, and the Nasdaq 100 Futures were up 125 points, or 0.7%.
Existing home sales ahead
On Friday, markets will get the opportunity to comb through fresh housing market data, which may provide insight into the health of the US consumer.
Existing house sales are predicted to increase by a seasonally adjusted 0.3% in December compared to the previous month, according to a Wall Street Journal economist survey. Over the entire year, the metric is expected to fall to its lowest level since 2008.
Mortgage rates in the United States were high during much of 2023, discouraging many buyers from acquiring residential properties. Meanwhile, increased mortgage rates prompted many current homeowners to stay put, reducing housing supply and restricting price decreases.
Mortgage rates, which reached a 23-year high in October, are showing signs of cooling. Freddie Mac stated on Thursday that the average fixed-rate 30-year mortgage fell to its lowest level since last May this week.
“This is an encouraging development for the housing market, and particularly for first-time homebuyers who are sensitive to changes in housing affordability,” said Freddie Mac Chief Economist Sam Khater in a statement. “However, as buying demand continues to increase, it will put even more pressure on already low goods for sale.
The US Congress passes a short-term financing bill.
Congressional lawmakers have approved a plan that would keep the federal government open until March, despite anticipated policy disputes over matters such as the Ukraine conflict and US border security.
The legislation was approved by the United States Senate 77-18 and the House 314-108. The law is now headed to President Joe Biden’s desk for signature.
Following recent short-term financial extensions, Thursday’s decision will fund certain vital departments until March 1 and the remainder of the government until March 8. They were set to run out of funds on January 19 and February 2, respectively.
However, Capitol Hill leaders must still secure funds for a nearly $1.7 trillion US spending agreement reached earlier this month. The specifics have yet to be settled, but the Biden administration and Democrats may need to agree to increased financing to assist control immigration at the southern US border in order to obtain Republican support for military aid to Ukraine.
Macy’s to cut employment, close locations – reports
According to media sources, Macy’s plans to reduce headcount and close sites in order to save money and streamline its operations.
The US department store chain will cut 2,350 jobs, or 3.5% of its workforce, and close five stores. In January 2023, Macy’s employed 94,570 full- and part-time employees and had 722 store locations.
According to the Wall Street Journal, Macy’s ambitions include further automating its supply chain and outsourcing some employment. According to a memo to staff quoted by the Wall Street Journal, the layoffs will take place on January 26.
Activist investors are reportedly putting pressure on Macy’s to buy out the owner of Bloomingdale’s and Bluemercury beauty stores for $5.8 billion. The firm, which is also undergoing a leadership transition, has yet to respond publicly to the activists.
Economic Calendar
10:00 AM ET Existing Home Sales M/M for December…est. 3.82M
10:00 AM ET University of Michigan Confidence, Jan-P…est. 70
1:00 PM ET Baker Hughes Weekly rig count data
4:00 PM ET Net Long-term TIC Flows for November
4:15 PM ET Fed’s Daly Speaks in Fireside Chat
Must read book about investing– check here
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2023 Chinese growth exceeds objective, but difficulties persist
China’s economy grew slightly less than predicted in the fourth quarter due to sluggish spending and a property market slump, but it narrowly beat government expectations for 2023.
Gross domestic product rose 5.2% year-over-year in the three months to Dec. 31, the National Bureau of Statistics reported Wednesday. The reading was weaker than 5.3% predictions but up from 4.9% the quarter before.
This raised 2023 growth to 5.2%, above Beijing’s 5% target. Despite COVID-19 limits, activity increased from 3% in 2022 due to a lower base for comparison. Except for the three pandemic-era closures, it was the lowest yearly expansion rate since 1990.
Last year, the Chinese economy was hampered by falling consumer spending, a housing market crash, and deflation. The world’s second-largest economy has demographic concerns, as shown by new data showing a faster population fall in 2023.
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