The Market Bull – July 23, 2019
The major averages closed with large gains on disappointing domestic economic news seemingly unconcerned about international events.
Credit Forecast.com released its household credit report for June showing 4.28% growth on a year ago basis. For the month consumer borrowing surged .71% or 94 billion led by strong gains across the board. Delinquency rates also increased across the board but remain very low. Of course, the mainstream media held this out as proof positive of a thriving economy, but then this is the same crowd that thinks debt and deficits don’t matter.
The Richmond Fed regional index plunged 15 points in July to -12. Weakness was pronounced in new orders and employment, as the series hit a more than 6-year low. Tariffs, trade wars, a slowing global economy and uncertainty were all cited as the culprits for the slowdown.
Existing Home Sales missed expectations in June falling 1.7% to 5.27 million units annualized on large declines in the West -3.5% and South -3.4%. Month’s supply increased to 4.4, about normal. The median price advanced 2.7% for the month to $285,700 a figure 4.3% higher than a year ago. That said lower mortgage interest rates since the beginning of the year have done little to drive sales.
Standard and Poors 500 Index closed at: 3,005.47 up 22.47
NASDAQ finished the day: 8,251.40 up 47.27
Gold ended trading at: $1,418.10 down $8.80