The Case-Shiller report on home prices came out and it showed good news! Home prices are down only -11.3% over the past year instead of the -11.9% expected by analysts. There was actually even better news that home prices increased in August for the third straight monthly gain.
Still, the economy is far from healthy. The report on consumer confidence showed that consumer’s outlooks weakened in October. That caused the market to give up its early morning gains. This confirms what the Fed’s Beige Book report said last week.
Most traders’ eyes are fixed on what Thursday’s GDP report will bring. Here’s my take on what to expect and what investors ought to do.