The U.S., Canada and Mexico struck a new trade deal called the U.S.-Mexico-Canada-Agreement (USMCA), which replaces NAFTA, last night. As a result, U.S. Stocks are surging and hovering near all-time record highs. The $1.2 trillion open trade zone agreement was on the brink of collapse recently, until the three countries agreed on the deal last night. The U.S. is still trying to hammer out trade issues with China where talks are still ongoing.
Real estate brokerage firm Redfin reports that the share of homes selling above list price just dropped below 2016 levels. For the week ended September 25, Redfin reports that 22.9% of homes sold above their asking price. For the same period last year, 25.5% of homes sold above their asking price. Redfin went on to say that the share of homes that sold above list hasn't been this low since 2016 and the number has been declining since its peak of 29% this past June.
Two key labor market reports will be released this week in Wednesday's ADP Private Payrolls Report and Friday's Non-Farm Payrolls Report. The labor market has been a source of strength for the U.S. economy in recent years and has kept up a robust pace in 2018. The recent report for August showed payroll gains of 201,000 while wage growth hit 2.9%, the largest annual increase since 2009. Total unemployment, measured by the U6 number, hit 7.4%, the lowest since April 2001.