Financial Options

Investors will find lots of information packed into the holiday shortened week and it's even more packed with no major indicators due out until Tuesday. The first numbers due out are the Commerce Department's final 3rd quarter GDP and corporate crofits figures with a 0.5% drop in GDP expected. Aside from corporate profits, Tuesday will have one other big corporate oriented figure – the State Street Investor Confidence Index. This index, which measures the actual risk taking behavior of institutional portfolios, could help indicate if the market has actually bottomed or if we are in a sustained bear market rally – if the big boys are starting to move out of debt securities back into equities, it's a good sign.

Tuesday will be a bit unusual in housing market news with the Existing Home Sales and New Home Sales being released on the same day by the National Association of Realtors and the Commerce Department. With mortgage rates hitting a 4 1/2 year low last week the Weekly Mortgage Applications Survey from the Mortgage Bankers Association [Wednesday] may show an increase in mortgage applications. If these indicators move in a positive direction in such a short period, it could be a powerful mover in lots of markets well outside housing and mortgage companies.

Wednesday also brings two indicators that could be potential bright spots. Durable Goods Orders, specifically the nondefense capital goods orders, were one of the positive indicators in last week's Leading Index. Personal income and spending will probably be mixed, with spending down and income up, but the strong improvements in real disposable personal income have been a big potential starting point for an economic rebound.

*See more information on the Financial Roadmap series here. Earnings reports are companies of interest, NOT recommendations.