The Market Bull – June 3, 2019
Another day and another surprise trade war as Trump hits India with tariffs spooking the markets. I wonder if the Europeans will be up next.
Construction spending missed expectations in April coming in unchanged, despite a big jump in public construction spending. Residential construction activity fell for a 4th consecutive month. Non-residential or commercial construction was also negative. On a year ago basis this series is down 1.8%.
Manufacturing activity cooled for a second month in May slipping .7 points to 52.1 on weakness in production. New orders and employment both advanced slightly. Price data was mixed but remains about even. Tariffs and supply chain disruptions were a hot topic amongst survey respondents, items that will be exacerbated with the Mexican tariffs imposed Friday with a June 10th start date and the latest round of tariffs leveled at India this morning.
BlackKnight’s latest Mortgage Monitor report showed record low mortgage delinquency rates in April at 3.47%, adding an additional .5% in foreclosure and total distressed mortgages stood at just 3.97%. The report went on to note that price appreciation continues to slow falling to just 1% in April and 3.8% from a year ago, the first-time annualized growth fell below its 25-year average of 3.9%, since 2012 during the depths of the last crisis. Slower price gains and falling interest rates have helped with affordability as the average price payment has slipped 6% since the beginning of the year.
The unofficial problem bank list is down to just 79 institutions as of May 2019 holding 52.1 billion in assets. That said May 31st featured the first bank failure in 15-months when Enloe State Bank, Cooper, Texas failed with $36.7 million in assets.
Standard and Poors 500 Index closed at: 2,744.45 down 7.61
NASDAQ finished the day: 7,333.02 down 120.13
Gold ended trading at: $1,330.20 up $19.10