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The Dow Jones Industrial Average was up 32 points, to 16,239, at 1:30 p.m. EST after mixed reports on the housing market and consumer confidence. The S&P 500 was up two point to 1,850.
There were three U.S. economic releases today.
S&P/Case-Shiller 20-City Composite Home Price Index
FHFA House Price Index
Consumer confidence index
The home price indices are the ones to pay attention to today. The S&P/Case-Shiller 20-City Composite Home Price Index and the Federal Housing Finance Agency House Prince Index both rose a seasonally adjusted 0.8% in December. That's down from November's 0.9% gain for the Case-Shiller and up from November's 0.1% decrease for the FHFA. On a nonseasonally adjusted basis, FHFA home prices were basically flat, up from November's 0.5% drop, while the Case-Shiller composite was down 0.1%, unchanged from November.
Source: S&P/Case-Shiller Home Price Indices.
With the slow gains, home prices are still up over the past 12 months. The Case-Shiller is up 13.4% year over year and the FHFA index is up 7.7%. Home price appreciation generally slows in the winter months, as fewer people move, and then picks up in the spring and summer. Still, 13.4% is the fastest annual growth since 2005 and brings U.S. home prices closer to the highs hit in 2006. Home prices are not expected to keep rising so quickly in 2014, as higher mortgage rates and increased supply start to slow home-price appreciation.
While the Dow and home prices were little moved, Home Depot is leading the Dow higher today, up 3.1% to $80.27, after its fourth-quarter and full-year earnings report. The home improvement retailer reported quarterly earnings per share of $0.73, better than analysts' expectation of $0.71. Revenue had been expected to hit $17.9 billion, but was down 3% year over year to $17.7 billion. The terrible winter was partly to blame, but Home Depot should see some benefit from the tough weather in the spring and summer as people repair their properties.
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The article Dow Jones Today Rising as Home Price Growth Slows originally appeared on Fool.com.
Dan Dzombakcan be found on Twitter @DanDzombakor on his Facebook page,DanDzombak. Hehas no position in any stocks mentioned. The Motley Fool recommends Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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