The dollar is rising against the euro on Monday and the Dow is up over 250 points in early trading following comments from China’s central bank about easing hopes which are being paired with dovish comments last week from Fed Chair Janet Yellen who indicated that interest rates may be warranted not until later in the year and the increase will be gradual.
Today the National Association of Realtors reported that pending home sales in February jumped 3.1 percent, the highest level since June 2013, and outpacing a forecast of -2.5 percent from briefing.com.
The Commerce Dept. reported on Monday that consumer spending increased only 0.1 percent in February, matching estimates, and outpacing a decline of -0.2 in January.
Economists are scaling back their estimates for 1st quarter 2015 GDP which vary between 1 to 1.5 percent.
Last week the third and final GDP reading for the 4th quarter of 2014 showed the U.S. economy grew at a pace of 2.2 percent.
The Department of Commerce reported this morning that February’s reading of Core PCE inflation, which takes out the volatile prices of gas and food, rose 1.4 percent on an annualized basis, below the Fed’s 2 percent inflation target.