The number of people who applied for U.S. jobless benefits fell by 12,000 to 350,000 in the week ended December 22, down from 362,000 a week earlier, reaching the lowest level in 4 1/2 years. The four-week moving average was significantly lower, falling 12,250 to 356,750.
A measure of Americans who signed contracts to buy homes jumped 1.7% to 106.4, reaching the highest level since April 2010, after a revised 5% gain in the prior month. At the same time, pending sales were up 9.8% from November 2011.
Manufacturing picked up in December, reflecting growth in orders, employment and exports that indicate the U.S. expansion will be sustained in 2013 following the budget deal.
The new 113th U.S. Congress, which convenes on Thursday, is set to take a fresh crack at a number of old, and highly contentious, issues, such as gun control, immigration, the record debt, tax reform and the farm bill.
Canada has at least one less thing to worry about after its largest trading partner found a way to avoid the much-feared "fiscal cliff."