Dow fell 47, advancers over decliners 5-4 & NAZ lost 20. The MLP index added 1+ to the 271s & the REIT index rose 1+ to 350. Junk bond funds fluctuated & Treasuries went up in price. Oil crawled higher in the 47s & gold went up 3.
Dow AMJ (Alerian MLP Index tracking fund)
A decline in US purchases of new homes in Jul may be a sign the industry took a breather following an even stronger run of sales than previously reported, according to gov data. Single-family home sales fell 9.4% M/M to 571K annualized pace (est. 610K), lowest in 2017, after 630K rate (revised from 610K). Combined upward revisions to Apr-Jun figures were 46K. The median sales price increased 6.3% Y/Y to $313K. The slowdown as H3 got under way may reflect lack of affordability & low inventory, which have been constraints, especially for younger, first-time buyers who find it harder to get housing-related credit. At the same time, the cooling is unlikely to derail what's been a gradual uptrend in sales that's helping the housing market make progress. The revisions for the previous 3 months show that demand has been supported by steady hiring & borrowing costs still near record lows. Shortages of previously owned houses on the market may also drive some prospective buyers to look at new properties. New-home sales, which account for about 10% of the market, are tabulated when contracts get signed. They are considered a timelier barometer of the residential market than purchases of existing homes, which are calculated when a contract closes. The supply of homes at current sales rate rose to 5.8 months from 5.2 months; 276K new houses were on market at end of Jul.
French manufacturing unexpectedly expanded at the fastest pace since 2011, underpinning a recovery in the euro area's second-largest economy that was long in the making. A Purchasing Managers' Index for the industry rose to 55.8 in Aug from 54.9 in Jul, according to IHS Markit. The forecast predicted the gauge would signal a slowdown in factory activity. A PMI for services fell to a 7-month low of 55.5. The French economy is enjoying its strongest continuous expansion since 2011, finally catching up with its European peers, after the election of Emmanuel Macron as pres bolstered sentiment. The Labor Ministry is set to give unions a preview this week of its plans to overhaul the employment market. “The data are particularly promising for the manufacturing sector, with output and new order growth at multi-year highs,” IHS Markit said. “With capacity pressures intensifying, signs are that unemployment will continue to decline in the third quarter.” A composite PMI for French manufacturing & services remained at 55.6 in Aug. A gauge for Germany due shortly will probably also held at its Jul reading. The prediction is for the PMI for the euro area will slip to 55.5 from 55.7.
French Manufacturing Propels Economic Growth as Services Slow
Lowe's reported lower-than-expected quarterly earnings & warned of slower growth in profit margins, as it spends more on marketing to boost sales in a robust home improvement market & the stock dipped. The retailer now expects operating margin to rise 80 to 100 basis points in the year, down from an earlier forecast for a 120-basis-point increase. In addition to marketing, LOW will incur more costs related to longer employee shifts in stores as it seeks to improve customer experience & drive sales. "We believe this is the right strategy to more fully capitalize on strong traffic trends in what we believe is a supportive macroeconomic backdrop for home improvement," CEO Robert Niblock said. The US housing market has been facing supply constraints, which has pushed prices up & encouraged homeowners to remodel their homes rather than buy a new house. EPS rose to $1.68 in Q2. Excluding one-time items, EPS was $1.57, missing the estimate of $1.61. Net sales climbed 6.8% to $19.5B. Analysts had expected $19.53B. Sales at stores open for more than a year rose 4.5%, edging past the 4.3% expectation. The stock sank 3.96. If you would like to learn more about LOW, click on this link:
club.ino.com/trend/analysis/stock/LOW?a_aid=CD3289&a_bid=6ae5b6f7
Trump's speech last night raised the possibility of a gov shutdown which gets traders nervous. On the other hand, less gov can be considered a plus for stocks. Stocks continue to meander during this semi holiday period, awaiting for serious trading to resume after Labor Day. The Dow is still near its record highs & up a massive 3½K since the election. Something has to be going right in the economy.
Dow Jones Industrials
Dow AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 47.75 | -0.08 | -0.2% |
| GC=F | Gold | 1,293.30 | +2.30 | +0.2% |
A decline in US purchases of new homes in Jul may be a sign the industry took a breather following an even stronger run of sales than previously reported, according to gov data. Single-family home sales fell 9.4% M/M to 571K annualized pace (est. 610K), lowest in 2017, after 630K rate (revised from 610K). Combined upward revisions to Apr-Jun figures were 46K. The median sales price increased 6.3% Y/Y to $313K. The slowdown as H3 got under way may reflect lack of affordability & low inventory, which have been constraints, especially for younger, first-time buyers who find it harder to get housing-related credit. At the same time, the cooling is unlikely to derail what's been a gradual uptrend in sales that's helping the housing market make progress. The revisions for the previous 3 months show that demand has been supported by steady hiring & borrowing costs still near record lows. Shortages of previously owned houses on the market may also drive some prospective buyers to look at new properties. New-home sales, which account for about 10% of the market, are tabulated when contracts get signed. They are considered a timelier barometer of the residential market than purchases of existing homes, which are calculated when a contract closes. The supply of homes at current sales rate rose to 5.8 months from 5.2 months; 276K new houses were on market at end of Jul.
U.S. New-Home Sales Dropped in July After Solid First-Half Run
French manufacturing unexpectedly expanded at the fastest pace since 2011, underpinning a recovery in the euro area's second-largest economy that was long in the making. A Purchasing Managers' Index for the industry rose to 55.8 in Aug from 54.9 in Jul, according to IHS Markit. The forecast predicted the gauge would signal a slowdown in factory activity. A PMI for services fell to a 7-month low of 55.5. The French economy is enjoying its strongest continuous expansion since 2011, finally catching up with its European peers, after the election of Emmanuel Macron as pres bolstered sentiment. The Labor Ministry is set to give unions a preview this week of its plans to overhaul the employment market. “The data are particularly promising for the manufacturing sector, with output and new order growth at multi-year highs,” IHS Markit said. “With capacity pressures intensifying, signs are that unemployment will continue to decline in the third quarter.” A composite PMI for French manufacturing & services remained at 55.6 in Aug. A gauge for Germany due shortly will probably also held at its Jul reading. The prediction is for the PMI for the euro area will slip to 55.5 from 55.7.
French Manufacturing Propels Economic Growth as Services Slow
Lowe's reported lower-than-expected quarterly earnings & warned of slower growth in profit margins, as it spends more on marketing to boost sales in a robust home improvement market & the stock dipped. The retailer now expects operating margin to rise 80 to 100 basis points in the year, down from an earlier forecast for a 120-basis-point increase. In addition to marketing, LOW will incur more costs related to longer employee shifts in stores as it seeks to improve customer experience & drive sales. "We believe this is the right strategy to more fully capitalize on strong traffic trends in what we believe is a supportive macroeconomic backdrop for home improvement," CEO Robert Niblock said. The US housing market has been facing supply constraints, which has pushed prices up & encouraged homeowners to remodel their homes rather than buy a new house. EPS rose to $1.68 in Q2. Excluding one-time items, EPS was $1.57, missing the estimate of $1.61. Net sales climbed 6.8% to $19.5B. Analysts had expected $19.53B. Sales at stores open for more than a year rose 4.5%, edging past the 4.3% expectation. The stock sank 3.96. If you would like to learn more about LOW, click on this link:
club.ino.com/trend/analysis/stock/LOW?a_aid=CD3289&a_bid=6ae5b6f7
Lowe's misses earnings estimates, shares fall
Trump's speech last night raised the possibility of a gov shutdown which gets traders nervous. On the other hand, less gov can be considered a plus for stocks. Stocks continue to meander during this semi holiday period, awaiting for serious trading to resume after Labor Day. The Dow is still near its record highs & up a massive 3½K since the election. Something has to be going right in the economy.
Dow Jones Industrials
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