The Market Bull – July 17, 2019
The major averages closed with small losses on generally disappointing data and a few notable earnings misses. News on the trade war goes quiet.
The Mortgage Bankers Association reports that its activity monitor fell 1.1% last week as refi’s advanced 1.5% and purchase apps slipped 3.8%. The 30-year contract rate for a Jumbo Loan increased fractionally to 4.07%. Mortgage activity continues to increase driven by low interest rates since the beginning of the year.
Housing starts missed expectations in June falling .9% to 1.253 million units annualized, a second consecutive decline. Permits fell 6.1% to 1.22 million units annualized. Multifamily activity was particularly weak.
Median Usual Weekly Earnings advanced 3.7% in the 2nd quarter. Wage gains were strongest for younger workers while those 65 and older saw wages decline slightly. The report went on to note that income inequality remained very high and was not expected to change anytime soon.
The Beige Book on regional economic activity reported modest economic growth through June as employment continues to expand. Some labor shortages and rising wages were also reported, the combination of higher wages and tariffs were also driving input costs. Tariffs were also reported as driving uncertainty and hindering investment.
Standard and Poors 500 Index closed at: 2,984.42 down 19.62
NASDAQ finished the day: 8,185.21 down 37.59
Gold ended trading at: $1,428.20 up $17.00