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Registered Investment Adviser Caleb Lawrence 

The major averages enter the final hour mixed on generally disappointing data. Vehicle sales missed again in June falling to 16.5 million units annualized, a 4th consecutive month of sales below 17 million units. Auto sales were particularly weak. So far despite record dealer incentives, loosening lending standards and longer contract terms auto manufacturers can’t seem to stem the slide in sales heading into summer suggesting that consumers are increasingly tapped out.

Like the other regional reports showing strength the New York Institute for Supply Management or ISM report gained 8.8 points in June to 55.5 despite a 5-month contraction in the employment component. Moving to Factory Orders and they fell deeper into the red in May down .8% on declines in durable and non-durable goods orders. The proxy for business spending nondefense capital goods ex. Aircraft advanced .2% to mark a second gain. That said this index remains at odds with the reginal Fed indexes showing strong manufacturing data.

Core Logic reports that home prices gained 6.6% in May from a year ago to mark a 64th straight month of year-over-year price growth. For the month prices advanced 1.2% to mark a 3rd consecutive monthly gain north of 1% something that hasn’t happened in 4-years, bringing the index to within .7% of its April 2006 peak.

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