CONSUMER CONFIDENCE DIPS WITH STOCK DECLINES July brought an 8.9-point drop for the Conference Board’s consumer confidence index; it fell to 90.9. The University of Michigan’s consumer sentiment index held up better, losing 3.0 points in July to descend to a mark of 93.1. PENDING HOME SALES SLIP; PRICE INDEX TICKS UP The National Association…
Read MoreEXISTING HOME SALES UP, NEW HOME SALES DOWN According to the National Association of Realtors, residential resales increased 3.2% in June with the median home value hitting an all-time peak of $236,400, 6.5% higher than a year ago. New home buying subsided 6.8% last month with the median sales price at $281,800, representing a 1.8%…
Read MoreCONSUMER & WHOLESALE PRICES INCREASE The Labor Department announced a 0.3% June rise in the headline Consumer Price Index, following the 0.4% advance for May. This left annualized consumer inflation positive for the first time in six months (+0.1%). June brought a 0.2% gain for the core CPI, which is now up 1.8% across the…
Read MoreGREECE GIVES IN, STOCKS RALLY In an about-face development, the Greek government acceded to the demands of its creditors Thursday night. Prime minister Alexis Tsipras submitted a bailout proposal similar to the one the Greek people had rejected by referendum on July 5, including sales tax hikes, pension spending cuts and debt restructuring. Leaders of…
Read MoreWALL STREET HANGS ON AS GREECE DEFAULTS When Greece revealed it would miss its July 1 debt payment to the International Monetary Fund last Tuesday, the Dow lost 2% for the day while the CBOE VIX gained more than 35%. (To add to the drama, the commonwealth of Puerto Rico stated that its debts were…
Read MoreCONSUMER SPENDING INCREASES 0.9% This May gain represents quite a change from the mere 0.1% improvement recorded by the Commerce Department for April. It appears households have started to spend some of the money they saved on fuel and energy costs this winter. Consumer incomes rose 0.5% in May, replicating their April advance. HOUSEHOLDS FEEL…
Read MoreSPRING SEES MORE SHOPPING Last week, the Commerce Department announced a 1.2% jump in retail sales for May, topping the 1.1% rise forecast by analysts polled by Briefing.com. Driving the improvement: a 3.7% leap in gas station sales. Purchases increased 2.1% at home improvement outlets, 2.0% at auto dealers and auto parts stores, 1.5% at…
Read MoreNO LETUP IN HIRING IN MAY Last Thursday, the International Monetary Fund took the unusual step of offering the Federal Reserve some advice – it urged the central bank not to raise interest rates until 2016. Given the large hiring gains this spring, the Fed may choose to ignore that recommendation. U.S. employers added 280,000…
Read MoreTHREE KEY REAL ESTATE INDICATORS IMPRESS All of a sudden, the housing market looks much healthier. The Census Bureau reported a 6.8% jump in new home buying in April, and the National Association of Realtors said its pending home sales index improved 3.4% in that month to 108.7 (its best reading since May 2006). The…
Read MoreRETAIL SALES WERE FLAT IN APRIL Analysts surveyed by MarketWatch had forecast only a 0.1% advance, so this news was no shock. Still, it was disappointing after the (revised) 1.1% gain noted by the Commerce Department for March. The year-over-year improvement in the pace of retail sales was just 0.9%; last August, it reached 5.0%.…
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