A Sneak Peek at the Week

This week's group of economic numbers will be fairly thin and are set for release near week's end. Initial jobless claims out on Thursday are expected to rebound modestly following last week's unanticipated plunge. Holidays can sometimes skew the numbers, and that's likely the reason for the latest drop. So the new data should provide us a more accurate update on the labor market. I may be getting a little ahead of myself but maybe we'll receive a pleasant surprise amid emerging signs that a bottom of the recession might be in sight.

New home sales are out on Friday and a tiny decline is forecast for March following a decent rebound in February. The jump we're seeing in foreclosures is providing a rare opportunity for buyers to snag great deals and finance them at record low rates. The combination is providing some much-needed support for the residential real estate market, but supply is plentiful and pricing power among sellers in most markets is unlikely to return anytime soon.