It is a relatively muted trading session, with only the Dow currently in the green.  However, it looks like the major indices will close out the week with a 12 out of 13-week gain.  This morning’s PCE report, coupled with the latest GDP report yesterday, has investors hopeful that the economy may just avoid a recession. We are hearing the term “” landing more often about the economy.  So, while it may weaken some, it looks to most that the economy will remain positive and out of a deep recession.

Pending home sales rocketed 8.3% m/m in December, topping estimates of +1.5%, and a revised decline of 0.3% in November.  Lawrence Yun, National Association of Realtors chief economist stated,

"The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices. Job additions and income growth will further help with housing affordability, but increased supply will be essential to satisfying all potential demand.” As to his outlook, he added, “home sales are projected to rise significantly in each of the next two years as the market steadily returns to normal sales activity.”

The S&P 500 is near the flat line with 8 of the eleven sectors in the green.  Consumer Discretionary and Healthcare are in a tight race for leadership, while Technology is the laggard due in part to earnings from Intel (INTC) and KLA Corp (KLAC). 

Advancers led decliners on the NYSE, and new highs far exceed new lows on both the NYSE and Nasdaq.

Have a great weekend.