The Market Bull – August 21, 2019
The major averages closed with modest gains on mixed data. The Congressional Budget Office warns that tariffs could crimp economic growth.
The Mortgage Bankers Association reports that mortgage activity fell .9% last week as refi’s advanced for a 4th week up .4% while purchase apps slipped 3.5% as this component continues to struggle. The 30-year contract rate for a jumbo loan was unchanged at 3.88%.
Existing Home Sales beat expectations in July with a 2.5% gain to 5.42 million units annualized. Month’s supply slipped to 4.2, about normal. The median price fell 1.6% to $280,800, a figure 4.3% higher than a year ago. All regions advanced except the Northeast which slipped 2.9%.
With cheap easy Wall Street money drying up, onerous debt levels and 90% well depletion rates in 3-5 years the tight oil miracle in the US is showing it’s Achilles Heal. Namely an inability to generate profits due to high drilling, production and exploration costs. Oil inventories slipped again in the latest period per the Energy Information Agency or EIA. Gasoline and distillate inventories advanced slightly. Net oil demand was 3.1% higher than a year ago. Expectations are that demand will rise modestly going forward as the global economy avoids a recession.
Standard and Poors 500 Index closed at: 2,924.43 up 23.92
NASDAQ finished the day: 8,020.21 up 71.65
Gold ended trading at: $1,512.60 down $3.10