ZIRP plagues investors and pension funds alike.
Despite generally better than expected data the major averages struggled to hold their early gains as their grossly overbought condition catches up with them, leading to modest losses in the final hour. The Philadelphia Fed index fell 7.6 points to -2.9 in July missing expectations for a small gain on weakness in employment, though new orders jumped.
The Chicago Fed National Activity Index gained a respectable .72 in June +.16 on strength in manufacturing and employment. The 3-month moving average gained .27 but remained negative at -.12. This index covers about 80% of total economic activity and has oscillated between +.3 and -.5 since early 2015 spending most of its time in the minus column.
Existing Home Sales increased 1.1% in June to 5.57 million units annualized. Month’s supply slipped to 4.6 while the median price gained 3.7% to $247,700 a figure 4.7% higher than a year ago. The Western region underperformed with a .8% decline in sales.
The European Central Bank kept rates unchanged as was widely expected leaving its primary rate at zero, marginal lending rate at .25% and its deposit facility rate at -.4%.
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