Despite generally disappointing but not overly significant data the major averages opened higher, only to slip late entering the final hour with small losses.
The Mortgage Bankers Association reports that mortgage activity fell 4.9% last week as refi’s slipped 3.5% and purchase apps dropped 5.9%. The 30-year contract rate for a jumbo loan fell to 4.7%.
Durable Goods orders slipped for a second month down .6% in May on weakness in non-defense capital goods. The proxy for business spending non-defense capital goods ex aircraft fell .2%. A volatile series, Trumps trade wars are exacerbating an already tenuous situation, a theme I suspect will become increasingly commonplace going forward.
International trade deficit decreased to 64.8 billion in May after exports increased to 143.6 billion and imports advanced to 208.4 billion. Will see what happens starting next month when the assorted tariffs start to bite, I seriously doubt the effect will be positive.
Wholesale inventories rose .5% in May on solid gains in durable and non-durable goods. Retail inventories advanced .4% during the same period. This series has shown steady growth for the last 6-months or so.
Pending home sales index slipped to 105.9 in May on a 3.5% decline in the southern region. The west saw pending sales increase an anemic .6%. On a year ago basis all regions report lower sales, except the south which was unchanged. Year ago data comparisons for real estate are growing increasingly negative.
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