U.S. Market Indexes Attempt to Advance, Housing Starts Unexpectedly Rose In November

Barry Adams
19 Dec, 2023
New York City

Benchmark indexes struggled in Tuesday's trading, and investors debated the future rate path and economic outlook.

Market indexes edged slightly lower in the final full-week of trading as indexes registered solid gains for the year so far.

The S&P 500 index has advanced 3.8% in December and 23.5% in 2023, and the Nasdaq Composite has gained 4.8% in the month and 42.4% in the year so far.

Investors have bid up stocks after inflation steadily edged lower in the year, largely reflecting lower energy prices, and resilient consumer spending kept the economic growth above 2%, contrary to the calls for recession by many economists at the beginning of the year.

 

Housing Starts In November Unexpectedly Soared 

Seasonally adjusted housing starts in November rose 14.8% from the previous month to an annual rate of  1.56 million homes, the U.S. Census Bureau reported Tuesday. 

October housing starts were revised to 1.359 million. 

November housing starts rose 9.3% from the annual rate of 1,427,000 in the month a year ago. 

Single-family housing starts in November were at a rate of 1,143,000, an increase of 18% above the revised October annual pace of 0.969 million.

The November rate for units in buildings with five units or more was 404,000.

Building permits decreased 2.5% from the previous month but rose 4.1% from a year ago in November to 1.46 million, and housing completions rose 5.0% from October but fell 6.2% from a year ago in the month to 1.447 million.

 

U.S. Indexes and Yields

The S&P 500 index gained 0.2% to 4,803.13, and the Nasdaq Composite increased 0.2% to 14,924.26.

The yield on 2-year Treasury notes increased to 4.43%, 10-year Treasury notes inched lower to 3.90%, and 30-year Treasury bonds eased to 4.02%.

Crude oil increased $0.26 to $72.55 a barrel, and natural gas prices decreased 4 cents to $2.44 a thermal unit.

Gold increased $2.17 to $2,029.15 an ounce and extended gains for the fourth day in a row after the dollar declined following the Fed's rate decision and announcement to cut rates several times over the next two years.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.46 and extended the previous week's loss of 1.4% and the loss of 0.9% in the year so far.

 

U.S. Stock Movers

Alphabet Inc. rose 0.4% to $136.30, and the company's Google agreed to settle charges brought by the U.S. states and consumers in a San Francisco federal court.

The settlement was disclosed on Monday and still needs approval from the judge. Google did not admit charges of unnecessary fees for app transactions and unlawful restrictions on apps on Android devices.

Google will pay $70 million in a fund for all 50 states, the District of Columbia, Virgin Island, and Puerto Rico, and $630 million in a fund for consumers.

Eligible customers of the Google Pay store will receive $2 and may receive additional payments depending on their spending between August 16, 2016 and September 30, 2023.

Google is facing other legal challenges regarding its digital advertising practices, search process, and results.

Nikola Corp. increased 3% to $0.84 after a court sentenced the company's founder, Trevor Milton, to four years in prison for making false and misleading statements to drive up investor interest.

Milton was also fined $1 million and sentenced to three years of supervised release.

Stocks fell 10% after the news in Monday's trading but rebounded in Tuesday's trading.

In October 2022, Milton was found guilty of two counts of wire fraud and one count of securities fraud and faced 60 years of imprisonment.

In 2021, the company agreed to settle civil charges brought by the U.S. Securities and Exchange Commission for $125 million.