Stocks rose on Tuesday morning and then reversed course in the afternoon.
All three major indices finished little changed, albeit still in the green.
However, oil prices took a dive.
First up, the scoreboard:
- Dow: 19,115.57, +17.67, (+0.09%)
- S&P 5o0: 2,203.59, +1.88, (+0.09%)
- Nasdaq: 5,376.55, +8.05, (+0.15%)
- WTI crude oil: $47.38, -$1.83, (-3.72%)
1. GDP crushed estimates thanks to consumer spending. The US economy grew by 3.2% in the third quarter — better than expected and initially reported — according to the second estimate of gross domestic product, released Tuesday. Consumer spending was stronger than previously estimated, and it was the main reason overall economic growth was revised higher. Personal consumption grew by 2.8%, up from 2.1% in the Commerce Department’s initial estimate.
2. A key measure of US home prices shot past the highest level since the eve of the last crash. The S&P Case-Shiller index of US home prices rose by 5.5% year-on-year in September to the highest level since July 2006. The 20-city composite, which covers major metros, rose by 5.1%, unchanged from the previous month.
3. Consumer confidence soared to a post-recession high. According to the Conference Board’s monthly report published on Tuesday the confidence index rose to 107.1, the highest level since July 2007. This was the first full report from the Conference Board since the US election. However, only a few responses were received after the election.
4. Oil prices got smoked and the Russian ruble slumped. Major oil producers will meet in Vienna, Austria on Wednesday to try to agree on the logistics of a production cut. However, on Tuesday, Iran’s oil minister Bijan Zanganeh said that the country will leave production at the levels decided at OPEC’s meeting in Algeria in September. WTI crude was down by 3.6%, Brent crude was down by 3.6%, and the ruble was down by 0.4% against the dollar.
he balance of power in the US housing market will shift from sellers to buyers by 2019, according to experts surveyed by Zillow. “As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favour of buyers within the next two to three years,” Svenja Gudell, Zillow’s chief economist, said in a report published Tuesday.
6. Trump is meeting with Goldman Sachs president Gary Cohn, according to Sean Spicer, a spokesman for the president-elect’s transition team. Cohn is the No. 2 executive at the firm, behind CEO Lloyd Blankfein.
7. Tiffany’s sales jumped for the first time in 2 years. Tiffany & Co reported its first rise in sales in eight quarters as strong sales in Japan and China more than offset a decline in the United States, its biggest market.