Stock market indicators foresee economic and financial trends. U.S. government departments publish some statistics as indicators. Housing starts, consumer confidence, and inflation indicators help investors form an overarching perspective about the financial tone of the markets. Leading indicators predict future occurrences. Interest rates tend to predict the direction of the economy. Rising interest rates may trigger an adverse business environment. Lagging indicators appear after something happens. This indicator confirms that a condition, event, or framework are already occurring. Unemployment rates have already happened. The statistic confirms an improving or worsening jobs environment. Coincident indicators present simultaneously with the patterns they point towards. For example, stronger than predicted earnings results in the stock market would support the conclusion of a robust economy.
Stock market traders may have a perspective about whether the announcement of housing starts is positive or negative to the market. Higher housing starts predict more home buyers. This is considered a favorable market indicator.