The existing home sales number represents the number of residential buildings that were sold in the previous months, excluding new construction. Existing home sales is considered a leading indicator of the health of the economy as it touches home improvement, financing (mortgages), real estate transactions, transportation and others. The number was forecasted to come in low, as forecasts called for a number of 4.68M vs the previous months 5.37M. The number for July came in at 3.83M, which is considerably under the lowered forecast.
The immediate market reaction was negative as the Dow sold off down to 9970 and then regained its footing. As of this writing the Dow is at 10017 and down 140 points.
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