Q3 GDP, Jobless Claims, Tax Credit Extension, Treasury Auction

Before we get to market news, the big item this morning is that the tax credit for first-time homebuyers, set to expire on Nov. 30, is likely to be extended into April 2010, according to the office of Senate Majority Leader Harry Reid. 

The Wall Street Journal reports: “The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.”

Now, on to markets… Equities were slashed yesterday after the new home sales report posted an unexpected 3.6% decline for September. The S&P 500 fell 1.95%, the Nasdaq shed 2.67%, and the Dow moved further south from the 10k mark as it fell 1.21% to 9,762.69.

This morning, ahead of the first look at Q3 GDP, markets are cautious but generally looking up. That’s not bad considering economists at Morgan Stanley, BofA-Merrill Lynch, and Goldman Sachs all reduced their estimates for the preliminary survey earlier in the week.

Meanwhile, the US$ index is weaker after a 5-day rally, WTI Crude is up 40 cents to $77.86 per barrel, and Spot Gold is $7.20 higher at $1035.30.

Key Events Today:

8:30 â€