This morning saw three data points that put a dent on what looked like a positive morning in the markets.
Home prices fell more steeply than expected in November, and consumer confidence soured in January, highlighting the hurdles still facing the economic recovery.
The S&P/Case-Shiller composite index of single-family home prices in 20 metropolitan areas declined 0.7 percent on a seasonally adjusted basis, a survey showed on Tuesday, a bigger drop than the 0.5 percent economists expected.
The decrease added on to the 0.7 percent decline seen in October from September.
Separately, a report from The Conference Board said an index of consumer attitudes fell to 61.1 in January from a revised 64.8 the month before, as Americans turned gloomy about the job market and their income prospects.
Chicago Purchasing Managers is often used as a leading barometer for overall manufacturing activity in the United States. If that holds true, some tempering of expectation for the Institute of Supply Management data coming soon from the may be seen here. The Purchasing Managers index came in at a reading of 60.2 in January versus a reading of 62.5 in December. Bloomberg had a consensus of 63.0.
- Prices paid was down at 62.4 in January versus 63.8 in December.
- The supplier deliveries component was up at 61.5 versus a reading of 56.5 in December.
- The employment index component was down to 54.7 in January versus 59.2 in December.
- The New Orders component was down to 63.6 for January versus a reading of 67.1 in December.
That is pretty disappointing when you look at it. The employment component may dampen some of the January unemployment and non-farm payrolls data for January, due this coming Friday. Bloomberg has a consensus of 135,000 jobs created in January and an official unemployment rate expected at 8.5%.
Europe continues to be the focus of headlines but U.S data is something to keep an eye on. The big indicator of the speed of the recovery will come this Friday.