Fewer Americans sign contracts to buy homes in October
Stocks slip, but S&P 500 still logs best month since April
Stocks pulled back slightly from their record levels Monday as Wall Street put a quiet coda on one of its most rocking months in decades.
The S&P 500 fell 0.5%, but the benchmark index still clocked a surge of 10.8% for the month, it’s biggest monthly gain since April. The Dow Jones Industrial Average, which has far less impact on 401(k) accounts than the S&P 500, had its best month since 1987.
The market’s slide followed reports showing how the worsening pandemic is dragging down the economy in the near term. But most investors are looking beyond that. The market’s strong November gains reflect Wall Street latching on to hopes that the economy will get closer to normal next year and strengthen in the long term. That scenario hinges largely on promising coronavirus vaccines being rolled out in coming weeks and, eventually, leading to fewer new virus cases, which have been increasing.
The S&P 500 lost 16.72 points to 3,621.63. The Dow fell 271.73 points, or 0.9%, to 29,638.64. The Nasdaq composite slipped 7.11 points, or 0.1%, to 12,198.74. The S&P 500 and Dow are close to their record levels, and the Dow crested the 30,000 level last week for the first time.
Energy stocks in the S&P 500 ended November with a nearly 27% gain. It’s a sharp turnaround from earlier this year, when oil prices plunged as the pandemic kept airplanes, trucks and factories around the world idled or slowed.
SILVER SPRING, Md. – The number of Americans signing contracts to buy homes fell for the second consecutive month as lack of available homes continues to stifle house hunters.
The National Association of Realtors said Monday that its index of pending sales fell 1.1%, to 128.9 in October, down from a reading of 130.3 in September. An index of 100 represents the level of contract activity in 2001.
Thanks to a red-hot summer, contract signings are still 20.2% ahead of where they were last year after lagging in spring due to the coronavirus pandemic. Contract signings are a barometer of finalized purchases over the next two months.
Three of four regions had declines in contract signings, with only the South logging a small gain.
Historically low interest rates are drawing prospective buyers into the market, but home prices have risen significantly the past year as supply remains near all-time lows.