By Evelina M. Tainer, Chief Economist, Econoday
December 27, 2002

Economic data was released in bits and drabs during this holiday-shortened week. As usual, housing news was robust while manufacturing news was anemic. Income growth was fairly good and consumer confidence appears to be on the mend. The ever-volatile figures on weekly jobless claims dropped sharply this week though seasonal volatility could push them back up in the coming weeks.

Equities were hurt by daily articles about poor retail sales figures, which some say may prove to be the weakest in 30 years! At the same time, jitters that war could come on two fronts (North Korea and the Persian Gulf) helped boost prices of Treasury securities and gold. Strikes in Venezuela and the tension in the Gulf pushed up oil prices.