Choppy early trade sends the major averages into the final hour mixed. The political scandal in Washington goes from the “President did nothing wrong” to Trump warning of severe financial consequences should he be impeached, in just one day, imagine that.
The trade war takes it up another notch with the application of a 25% tariff on 16 billion worth of trade between China and the US today. This brings the combined total of tit-for-tat tariffs to 100 billion.
Meanwhile the latest Federal Open Market Committee meeting minutes warn of considerable downside risks to the economy should the trade war prove protracted while also acknowledging that the nascent slowdown in real estate could also present downside risks.
New home sales missed again in July falling 1.7% to 627,000 units annualized on a huge decline in the northeast. The western region advanced a solid 10.9%. Month’s supply increased to 5.9, the median price jumped 6.6% to $332,800.
The Kansas City Fed regional index fell 11 points in August to 14 on broad based weakness. Price data slipped a little but remains high.
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