But once the Federal Reserve can hold interest rates in the foreseeable future, there is hope that the housing market will start recovering.
Monday, the National Association of Home Builders will publish its latest monthly survey of builders. Trust rises in February due to a fall in mortgage lending rates that fell with long-term bond yields this year.
Mortgage rates have fallen even more lately thanks to the Fed, as well as fears about China's economy and the latest. Brexit drama. The 30-year fixed-rate mortgage reached 4.31% last week, the lowest level for more than a year.
"The housing market benefits from stock market volatility," said Odette Kushi, Deputy Chief Economist at First American. "We have a lot of demand from the older Millennials sitting on the sidelines waiting to become owners, and lower levels should increase house sales."
Kushi said the latest jobs reports are also in favor of housing. Although the number of jobs added is disappointing, salaries continue to increase. And that could help people try to save money so they can live at home or rent a home.
She pointed to the recent increase in housing construction and the completion of housing as another good sign. Supply is bigger than it was.
"The housing market remains ready for a strong spring," said Joel Kahn, vice president of economic and industrial forecasting of the Mortgage Bankers Association, writes in his latest report on mortgage applications. The volume of credit applications rose 2.3% earlier this month. "We are beginning to see signs of new residential buildings and inventory, which increases the ability to buy many home buyers who have been hampered by the continuing shortage of supply," Cannes added.
All this could lead to a reversal of existing sales figures for housing for February, which will be released by the National Association of Realtors on Friday. Sales declined by 1.2% from December to January. But Cushi thinks they recovered last month.
This should be good news for housing-related shares already enjoying a solid start until 2019 after hoping the market will return.
The SPDR S & P home builders ETF XHB ) – which includes large builders such as Lennar and Toll Brothers, and housing companies such as Roomba ] iRobot IRBT ) and giant gadget Whirlpool – is 17% this year. ] Retailer WSM ) who is also a member of the ETF builder, will report his earnings on Wednesday. Wall Street expects sales to rise by 7% and profit to jump by 17%.
2. Fed balance sheet contraction : The US Central Bank will take its final decision on Wednesday at 14:00 ET and President Jerome Powell will speak at 14:30. No increase in interest rates is expected, so the hot topic will be whether the Federal Reserve will suggest changes to the so-called quantitative tightening policy.
In 2017, the Fed decided that the US economy was strong enough to start selling the central bank with assets it absorbed to boost recovery after the Great Recession. Critics say the Fed's decision to curb its balance has contributed to the economic turmoil. The Federal Reserve has signaled that it may suspend or delay the $ 4 trillion landing, which is excited by investors.
3. FedEx and the economy: The company has already warned that global issues, including trade disputes and economic delays, could have been a huge blow in the past year. FedEx FDX ) cut its profit forecast by 7% to 10%, with the deepest cuts in international business.
The company will release quarterly earnings update on Tuesday after closing markets. And given the macroeconomic issues, they are still a serious concern, investors will be looking at how they will influence one of the world's largest courier companies.
4. The problem of Nike by Zion: This was the breakthrough in the world when the Duke basketball star Zion Williamson injured his knee after Nike . last month with top rival North Carolina. This has led to a dip in the company's shares. Nike said it was an "isolated phenomenon," but with Mad Madness starting this week, another malfunction in the wardrobe is the last thing Nike needs.
However, Wall Street expects good news from Nike when it publishes a profit after the bell on Thursday, sales are expected to grow by nearly 7%. But investors will pay attention to everything the company says about demand in China and Europe, given the recent signs of softness in these economies.
Tuesday – FedEx ( FDX ) Revenue; DSW income; stocks of crude oil; The Federal Reserve Interest Rate Decision
Thursday – Revenues from and Nike ( NKE ) ; IPO of Levi Strauss is expected; Decision of the Bank of England; EU leaders meet to discuss Britain's request to postpone Brexit