Dow dropped 154, decliners over advancers almost 2-1 & NAZ was off 75. The MLP index was fractionally lower in the 207s & the REIT index was off 3+ to the 456s (still in record territory). Junk bond funds hardly budged in price & Treasuries slid back a tad. Oil rose to the high 71s, a new 2+ year high, & gold fell 4 to 1861.
AMJ (Alerian MLP Index tracking fund)
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Prodcuer prices rose in May by the most on record as the reopening of the US economy from COVID-19 lockdowns gathered momentum. The producer price index for final demand last month increased at a
6.6% annual pace, quickening from last month’s 6.2% gain, the Labor
Dept said. The annual reading for May was the hottest since
recordkeeping began in 2010. The annual data has a "base effects" skew as a result of the price decline that occurred at the beginning of the pandemic. On a monthly basis, prices rose 0.8%, quickening from last month's 0.6% increase. The forecast expected prices to increase 6.3% from a year ago & 0.6% month over month. Almost
60% of the increase was due to the 1.5% increase in prices for final
demand goods. Prices for final demand services rose 0.6%. Prices
for nonferrous metals spiked 6.9% in May while beef & veal; diesel
fuel; gasoline; hay, hayseeds, & oilseeds; & motor vehicles also saw
increases. Prices for fresh fruit & melons fell 1.9% primary basic
organic chemicals & for asphalt also declined. Core prices, which exclude food & energy, rose 0.7% month over month & 4.8% annually. The forecast had expected increases of 0.5% & 4.8%,
respectively.
Producer prices surge 6.6% annually, most on record
Homebuilder confidence slipped to its lowest level since last Aug as rising material costs weighed on sentiment. Data showed the National Association of Homebuilder’s/Wells Fargo Housing Market Index (NAHB) in Jun fell 2 points to 81. Any reading above 80 signals strong demand. The index can range from 0 to 100 with any print over 50 considered positive sentiment. "Higher costs and declining availability for softwood lumber and other building materials pushed down builder sentiment in June," said NAHB Chairman Chuck Fowke. "These higher costs have moved some new homes beyond the budget of prospective buyers, which has slowed the strong pace of home building."
Homebuilder confidence slips to 10-month low as rising material costs weigh
Ford (F) Bronco SUVs are rolling off a Michigan assembly line &
shipping to dealers for the first time in a ¼ century, marking a
new beginning for what's expected to be a significantly profitable
product for the automaker. Ford started shipping Bronco SUVs from the Michigan Assembly plant yesterday. Inside the plant, 2- & 4-door versions of the Bronco
in all sorts of colors — from vibrant yellows & blues to blacked-out
models — were being produced. The
Bronco is viewed as one of the most critical nonelectric product
launches for the company in years. It is expected to be the flagship
model for a new Bronco family of vehicles. “To see it rolling down the line here, it’s
amazing,” Bronco marketing manager Mark Grueber said. “It’s almost 25 years to the day that the last Bronco
rolled down the line here. It was June 12, 1996.” The resurrection of the Bronco, which Ford initially produced from 1965-1996, has been years in the making, including a coronavirus-related delay earlier this year. The company initially announced plans in Jan 2017 to bring back the Bronco name. Grueber said the plant is “trying to ramp-up production as fast as we can to satisfy the huge demand.” The stock went up 9¢.
If you would like to learn more about Ford, click on this link:
club.ino.com/trend/analysis/stock/F?a_aid=CD3289&a_bid=6ae5b6f7
Ford begins shipping new Bronco SUVs for consumers
The inflation data was dreary, but hardly a surprise. The Fed is not expected to come up with changes, but investors will be looking for what they have to say about the guidance going forward. Increases are coming, but nobody knows when.Dow Jones Industrials
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