Market Recap: Existing Home Sales Edge Higher, Goodbye 2007!
Happy New Year to everyone in the Minyanville community!
It's New Year's Eve and it showed in the markets as traders eyed the exits and the markets dipped lower. The Dow Industrials dropped -0.76%, or -101.05 points to close at 13,264.82, the S&P 500 sold off -10.34 points, or -0.70% to 1,468.15, and the Nasdaq Composite fell -0.83% or -22.18 points to 2,652.28.
The lone economic figure released today was existing home sales. The numbers were in line with expectations, edging +0.4% m/m to a seasonally adjusted annual rate of 5 mln units. Today, Minyan Editor Andrew put out a nice piece comparing the businesses of auto lending and mortgage lending, where he stated, "Although auto loans may experience a similar rise in loss frequency as the American consumer comes under pressure from burdensome debt and rising unemployment, the loss severity is unlikely to increase significantly since car prices are largely insulated from economic downturns." Read more in You Can't Drive Your House to Work.
As this was the last trading session for 2007, we'd like to leave you all with a collection of some of our best articles for the year:
- First, the Fed cut interest rates at three different times this year amid uncertain markets. See all the best commentary in Ben Bernanke and the 2007 Federal Reserve.
- Also, as gold finishes the year above the $800 level, take a trip back to early this year when the metal was below $700 in Did All That's Gold Glitter in 2007?
- Throughout 2007, Toddo has offered his weekly thoughts on the economy at large. There were no boring moments to note here. Read more in 2007 Through the Eyes of One Man.
- Lastly, the overriding theme of 2007 has to be the subprime lending mess, which opened the door for a mass of other credit issues. We were there every step of the way. Check out Who Will Protect This House?
In commodities, gold lost -5.8 to 836.90, silver picked up +0.027 to 14.797, copper lost -2.70 to 303.05 and crude oil gained +0.03 to 96.03.
For more on today's action, make sure to read a sample of our Buzz & Banter in Buzz Bits.
Happy New Year!
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