“It is not the strongest or the most intelligent who will survive but those who can best manage change.”
– Charles Darwin

1. US Previously Owned Home Sales Fall to an Almost 14-Year Low — Contract closings decreased 1% from a month earlier to a 3.84 million annualized rate, according to figures released Wednesday from the National Association of Realtors. Economists surveyed by Bloomberg expected a 3.88 million pace, based on the median projection. Many buyers and sellers are waiting for home financing costs to fall from their current perch in the mid-6% range. Mortgage rates, which slid to a two-year low in September, have climbed after recent job market and inflation data boosted bets the Federal Reserve will take a more gradual approach to reducing borrowing costs. The resale market has largely been stuck for the past two years, barely moving much above or below an annualized rate of 4 million homes on a monthly basis. A major factor has been the so-called lock-in effect, or homeowners’ reluctance to list their homes and surrender their lower mortgage rate.
2. U.S. Economy Again Leads the World, IMF Reported — The International Monetary Fund highlights those divergent paths in its latest global scorecard, released Tuesday. In what has become something of a trend, the IMF upgraded the outlook for both U.S. and global growth, though more for the former.
The IMF projects U.S. gross domestic product to expand 2.5% in the fourth quarter from a year earlier—half a percentage point higher than a July forecast, which itself was an upgrade from a January estimate. U.S. output rose 3.2% in 2023. For 2025, the IMF projects the U.S. to grow 1.9%, versus 1.7% for all advanced economies and 3.1% for the global economy. China, the world’s second-largest economy, is expected to post 4.5% growth this year—a slight downgrade from a prior estimate—and 4.7% in 2025, after expanding 5.4% last year. The euro area’s economy is expected to grow 1.2% this year and 1.3% next year, after expanding 0.2% last year.
3. Tesla Reports Higher Profit in Third Quarter — The Austin, Texas-based automaker said it recognized its second-highest quarter of regulatory-credit revenue, which comes from other automakers buying them to keep up with emissions requirements. Its energy business also stood out, helping to offset a decline in selling prices for many of its models. Net income was $2.2 billion for the July-to-September period, a 17% increase from a year earlier and lifted in large part by higher sales of regulatory credits to other automakers and the strength of Tesla’s energy business. Global deliveries also rose in the third quarter, helping to boost revenue by 8% to $25.2 billion. The company’s closely watched operating margin was 10.8%, up from 7.6% a year earlier.

The week ahead — Economic data from Econoday.com: