The Market Bull – July 30, 2019
The major averages finished with small losses despite generally positive data ahead of tomorrow’s decision on interest rates that should see a ¼% cut.
Personal Income gained a solid .4% in June on strong gains in Rental and Wage income. Previous months were revised higher and this series has been solid for 7-straight months. On a year ago basis real disposable income is up a respectable 3.3%, the savings rate advanced to 8.1%.
The Personal Consumption Expenditures or PCE Deflator showed prices advancing .2% in June and a very modest 1.4% from a year ago. Gains for the month were largely driven by Durable Goods prices.
Personal Spending advanced .2% in June on strong goods spending. Once again consumers flush with cheap debt power spending and the economy with it, question is, for how long given record debt levels.
Pending Home Sales increased 2.9 points to 108.3 in June. Gains were broad based by region. The West was particularly strong snapping a pair of declines with a 5.4% advance. On a year ago basis all regions were positive.
Case Schiller reports that it’s Home Price Index advanced 2.4% in May with strong gains in San Diego +.6% and Los Angeles +.5%. On a year ago basis prices are up 3.4%, that said the rate of increase continues to slow. As it has done for some time now.
Standard and Poors 500 Index closed at: 3,013.18 down 7.79
NASDAQ finished the day: 8,273.61 down 19.71
Gold ended trading at: $1,443.30 up $10.00