Daily News 01/20/2015

January 20, 2015

Tuesday – January 20

Home builder sentiment across the nation slipped modestly in January, but still remains well above levels seen in early 2014. The National Association of Home Builders reported that its Housing Market Index slipped to 57 in January, which was just below the 58 expected. Readings above 50 indicate that builders view market conditions as favorable rather than poor as the index has not been below 50 since June 2014. “After seven months above the key 50 benchmark, builder sentiment is reflecting the gradual improvement that is occurring in many markets throughout the nation,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Delaware.

President Obama will deliver his State of the Union address on Tuesday night, which will most likely be a platform to declare victory over the economic fallout that made up his first six years in office. The address will begin at 9:00 p.m. EST. The president is also expected to center his address on the wealth inequality and will most likely lay out plans to enact additional taxes for wage earners making $500,000 or more, while easing some taxes for the middle and lower classes. The new proposals will target inherited taxes, capital gains and large financial institutions to pay for the tax benefits for the low and middle class taxpayers.

The International Monetary Fund (IMF) has issued good news for the U.S. as it has raised its economic forecast for 2015. The upward revisions are due in part to lower oil prices, which is fueling stronger consumer demand for goods and services. The IMF forecasts that the U.S. economy will grow by 3.6% in 2015, up from the 3.1% forecast issued back in October. However, the global economy is expected to grow by 3.5%, down from 3.8% originally projected.