Monday, December 19, 2011
Given the general dearth of domestic economic news today, the market will likely get a lift from the temporary payroll tax cut extension deal over the weekend. Bond yields on European government bonds, particularly in Italy, are also relatively stable today, belying the Friday threats from the credit rating agencies. Markets will also be sizing up the potential instability on the Korean Peninsula following the death of the North Korean leader.
This week brings up a flurry of economic releases, as the holiday schedule brought forward a number of reports to this week. There is a heavy concentration of housing-related reports on the docket this week, with Housing Starts on Tuesday, Existing Home Sales on Wednesday, and New Home Sales on Friday. We also have the final read on the third quarter GDP report on Thursday, while the Durable Goods and Personal Income reports come out on Friday.
Overall trading volumes are typically at their lowest point at this time of the year, which makes it difficult to assign meaning to the market's day to day action. Low volumes also tend to exacerbate market volatility. As such, don't be surprised by sharp market moves in either direction over these last trading sessions of the year.
Sheraz Mian
Director of Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
