The major averages enter the final hour with modest losses despite generally positive economic data. The Securities and Exchange commission or SEC has predictably subpoenaed Tesla over Elon Musk’s poorly considered remarks about taking the company private.
Higher interest rates continue to drive mortgage activity lower as one would expect, per the Mortgage Bankers Association or MBA. The weekly Mortgage Activity Index fell 2% as refi’s were unchanged and purchase apps dropped 3.3%. The 30-year contract rate for a Jumbo Loan slipped fractionally to 4.73%.
Productivity gained a better than expected 2.9% in the 2nd quarter. On a year ago basis productivity is up an anemic 1.3%. Unit labor costs fell .9% in the 2nd quarter. On a year ago basis unit labor costs advanced 1.9%.
The Empire State regional manufacturing index increased 3 points to 25.6 in August. The details were unremarkable, price data was mixed but remains high.
Retail sales advanced .5% in July, previous months were revised significantly lower. Sales growth was led by clothing, eating and drinking establishments.
Industrial production grew .1% in July, June was revised higher. Capacity utilization was unchanged at 78.1%.
This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.
Rebroadcasts, additional writings, and other entries are also available on my Blog at www.clinvestments.com
Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.