The Market Bull – June 25, 2019
Disappointing economic data sent the major averages into the close with large losses. Rumors of another tariff suspension with the Chinese make the rounds. Shades of 2007 appear in a hedge fund meltdown as H2O Capital Partners, owned by Natixis, suspend withdrawals as assets plummet, following questions about its investment style and managements transparency.
New Home Sales missed substantially in May falling 7.8% to 626,000 units annualized. Huge declines were seen in the West down 35.9% to just 125,000 units, and the Northeast off 17.6%. A second consecutive decline for the series, month’s supply jumped to 6.4. The median price fell 8% to $311,500. Not a good sign as it is the middle of the spring and summer selling season.
The Richmond Fed regional survey slipped 2 points in June to a barely positive 3. Weakness was noted in employment, new orders improved fractionally to 1. Uncertainty from the trade war and tariffs and a slowing global economy were cited as the reasons for the slowdown.
State level Personal Income Growth slowed in the 1st quarter to .9%, this works out to a still respectable 3.4% annualized. Declines in investment related income were largely to blame for the slowdown. Employment and wage growth decelerated as well. All regions saw income gains with the Southeast, Southwest, Rocky Mountain and Far West regions showing particularly strong growth.
Standard and Poors 500 Index closed at: 2,917.38 down 27.97
NASDAQ finished the day: 7,884.72 down 120.98
Gold ended trading at: $1,426.60 up $8.40