1. Holiday sales may beat expectations
To hear retailers tell it, there’s not much cause for any ho ho hos. Pessimistic merchants are hoping that a burst of activity by procrastinators will help them meet weak holiday sales goals. Yet economist Brian Wesbury says portents of gloom have been way overdone. “There’s a lot of unjustified fear, but actual sales will blow away all of the bleak projections,” said Wesbury, of First Trust Advisors in Lisle. Because jobs remain relatively plentiful, and incomes are growing, he added, “there is plenty of power behind consumer spending. So merchants won’t receive a lump of coal.”
2. Wheat price to dampen
Watch for rains in the Plains to help yank down the price of wheat, which surged to a record, above $10 a bushel, at the start of last week. Abundant moisture in Kansas is seen as the key for trimming a steep tab for the staff of life. The price ended Friday at $9.49 a bushel.
3. Boeing boosts durables
Expect a lift to the nation’s mood from Thursday’s report on orders for durable goods. Analysts expect a gain of 3 percent in November’s total. Credit Chicago-based Boeing Co., which hit the jackpot last month with requests for new planes and equipment totaling $23 billion.
4. Post-Bowl boom a bust
Not much improvement for the real estate market is anticipated Friday, when the government totes up sales of new single-family homes for November. Builders report that there is about an eight-month supply of new homes sitting unsold. Analysts at Bank of America predicted an expected boom following the Super Bowl “will fall short of expectations.”
5. Santa rally in new year?
Investors in the stock market keep asking, what became of the Santa Claus rally? Since members of the Federal Reserve lowered interest rates less than two weeks ago, equities have gone nearly nowhere. But Flossmoor investment adviser Richard Evans says the market remains a bull. “People are being too pessimistic,” he says. “Wall Street will see an explosive rally early in the new year.” Evans sees the biggest leap involving high-tech stocks.
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wsluis@tribune.com
