Thursday, August 12, 2004

 

Housing only bright spot in this week's financial reports.


Lackluster would be the term to describe this week's financial reports released Thursday. Jobless claims were down 3,000 to 333,000. Retail sales were up .7%, down from an expected 1.1%. When you take out cars from the figures, retail sales were only up .2%...pretty paltry.

On the other hand, military action in Iraq continues to push oil prices higher, despite promises of increased production from Saudi Arabia. Oil is currently sitting at $45.35 per barrel, a new record high.

The only bright spot is that housing prices are increasing - good news for those who own homes, bad news for those that don't - despite rising interest rates. Many economists felt that increased rates would deflate the gains house prices have had over the past few years.

The stock market responded to this financial news by dropping over 77 points on the Dow and over 21 points on the NASDAQ. Yields on the 10 year bond are relatively flat, currently up 1 bps.

Look for updates on breaking financial news as it happens.

This report brought to you by the Business Administration program at Morrison University.

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