Dow soared 349, advancers over decliners 3-1 & NAZ was off 23. The MLP index added 2 + to the 236s & the REIT index fell 2+ to the 378s. Junk bond funds slid lower & Treasuries were also being purchased, lowering yields. Oil went up 1+ to the 75s & gold jumped 30 to 1986.
AMJ (Alerian MLP Index tracking fund)
Americans pulled back on spending at retail stores in Jun, even as inflation showed welcome signs of slowing down. Retail sales, a measure of how much consumers spent on a number of everyday goods, including cars, food & gasoline, rose just 0.2% in Jun, the Commerce Dept reported. That is below both the 0.5% increase projected & the 0.5% gain recorded in May. Excluding the more volatile measurements of gasoline & autos, sales climbed 0.3% last month. The figures are not adjusted for inflation. "While positive, the numbers were weaker than expected and show growing consumer caution," said Robert Frick, corp economist at Navy Federal Credit Union. "Overall, Americans have the money to spend with more jobs, higher wages and lower inflation. But given slowing spending and higher savings, they’re choosing to be prudent, perhaps because a majority see unemployment rising later this year." Consumers spent more on items like cars, furniture & electronics & appliance stores. They also continued to open their wallets when online shopping, with spending at non-store retailers jumping 1.9% from the previous month. Sales rose in 7 of 13 retail categories last month. At the same time, Americans pulled back on spending in areas like grocery stores, garden & home improvement outlets, specialty hobby retailers like sporting goods, & musical instrument & bookstores. Gas sales slid 1.4% in Jun, even as the cost of fuel jumped. A solid job market & big wage increases have helped to buoy consumer spending in recent months, despite record-high inflation. However, the softer-than-expected data is the latest sign that consumers are growing more cautious.
Retail sales rise less than expected in June as spending cools
Builder sentiment in the market for single family homes rose 1 point in Jul to 56, according to the National Association of Home Builders/Wells Fargo Housing Market Index (NAHB). It marks the 7th straight month of gains & the highest level since Jun 2022. A reading above 50 is considered positive sentiment. Builders say low supply in the resale market is driving demand to new construction, but higher mortgage rates & supply-side challenges continue to put pressure on the market. “Although builders continue to remain cautiously optimistic about market conditions, the quarter-point rise in mortgage rates over the past month is a stark reminder of the stop and start process the market will experience as the Federal Reserve nears the end of the ongoing tightening cycle,” said Robert Dietz, NAHB's chief economist. The average rate on the popular 30-year fixed mortgage crossed over 7% briefly in May & then again at the end of Jun. It has only come down slightly in the last week. Those higher rates are straining affordability in the market, where prices for existing homes are rising yet again. Of the NAHB index's 3 components, current sales conditions in Jul rose 1 point to 62; buyer traffic increased 3 points to 40, the highest reading since Jun of last year & sales expectations in the next 6 months fell 2 points to 60. The drop in expectations is due to that jump in interest rates & the resulting hit to affordability. Sales of newly built homes in May, the latest reading available, jumped 13% compared with Apr & were 20% higher than May 2022, according to the Census Bureau. The median price was down over 7% from May of last year, but that median may be skewed by the mix of homes selling, which is currently leaning toward the lower end.
Homebuilder sentiment rises again in July, but builders warn higher mortgage rates are hurting
United Airlines (UAL) mapped out another expansion of Asia flights in the coming months,
part of its push to capitalize on a boom in long-haul intl
travel that has helped drive airlines back to profitability after the Covid-19 pandemic. Intl
travel bookings surged this year, airline execs have said, as
travelers seek long-distance trips they put off during the pandemic amid
a web of travel restrictions & concerns about the virus. Airlines
have been beefing up their schedules in response. “In general, the Pacific is as strong if not stronger than the
Atlantic is today,” Patrick Quayle, UAL's senior VP of
global network planning & alliances, said. UAL announced new flights to New Zealand & Australia in Apr. Starting
Oct 29, UAL will fly daily nonstop flights between San Francisco & Manila, becoming the only US airline to offer nonstop service to
the Philippine capital from the continental US. The
carrier will also add a 2nd nonstop flight between San Francisco &
Taipei, Taiwan, also starting Oct 29, & plans to resume service
to Tokyo's Narita Intl Airport from Los Angeles in addition to
flights between Los Angeles & the more city-centric Haneda
Intl Airport. The stock rose 48¢.
If you would like to learn more about UAL, click on this link:
club.ino.com/trend/analysis/stock/UAL_aid=CD3289&a_bid=6aeoso5b6f7
United adds Tokyo, Manila and Taipei flights to cater to international travel boom
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