Dow fell 25, decliners over advancers 2-1 & NAZ went up 30. The MLP index was flattish in the 182s & the REIT index fell 4 to the 459s. Junk bond funds crawled higher & Treasuries had a little buying. Oil climbed higher above 70 & gold was flat at 1803.
AMJ (Alerian MLP index tracking fund)
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The number of Americans filing for first-time jobless benefits last week unexpectedly rose from pandemic-era lows to their highest level since early Jun. The
Labor Dept said that 419K Americans filed for initial
jobless benefits last week, above last week's upwardly
revised 368K filings. The forecast
was expecting 350K filings. Continuing
claims, meanwhile, fell to 3.24M filings, but were above the 3.1M consensus. Continuing claims
were at their lowest level since Mar 21, 2020. Continuing
claims have been declining in recent weeks as about ½ of states ended
or announced plans to end the $300 per week in supplemental
unemployment before they expire in Sep. Despite
the job market's improving backdrop, almost 12.6M Americans
continue to receive some form of unemployment assistance.
Initial jobless claims unexpectedly climb off pandemic-era lows
Reps on the House Budget Committee are asking congressional leaders to including spending controls with any increase debt ceiling increase, as the Jul 31 expiration of the debt limit suspension looms. Reps for weeks have said they plan to use the fact Congress will be forced to raise the debt limit draw focus to what they see as the country's "spending problem." Their letter highlights what the Reps say are alarming statistics about the federal gov's spending & proposes actions Congress could take to reign that in. "With record amounts of government spending over the past two years accompanied by historic levels of inflation, in addition to the dramatically changed fiscal conditions of the country over the past five decades, it is imperative for Congress to take meaningful steps now to place our country’s finances on a more sustainable and appropriate path," the letter says. It cites Congressional Budget Office projections that the deficit this year will be $3T & that the gov is projected to spend more than $60T over the next 10 years – without even factoring in Dems' pending $3.5-T plus spending plan. "Unchecked government spending is increasing inflation across the economy and harming American families – especially those on low and fixed incomes," the letter adds. It notes that previous debt ceiling increases have included spending controls & suggests some ways that Congress could control its future spending. Among them are pairing the debt ceiling bill with major federal spending cuts; federal targets for spending-to-GDP ratios; stepping up enforcement of previous spending reforms like Pay-As-You-Go & the Congressional Budget Act; & a balanced budget amendment. The letter is signed by all 15 Reps on the House Budget Committee.
Republicans ask for spending cuts with debt ceiling bill
After 4 straight months of declines, sales of previously owned homes rose 1.4% in Jun month-to-month to a seasonally adjust annualized rate of 5.86M units, according to the National Association of Realtors (NAR). These sales represent closings, so they are based on contracts signed in Apr & May. Sales were 22.9% higher compared with Jun 2020. That annual comparison, according to the Realtors, is still slightly skewed due to pandemic lockdowns in certain parts of the country that lasted into summer last year. The inventory of homes for sale at the end of Jun was 1.25M, representing a 2.6-month supply at the current sales pace, a slight improvement from May's 2.5-month supply. “We may have turned a corner on inventory,” said Lawrence Yun, NAR's chief economist. “There is some softening in the demand.” Low inventory continues to put pressure on prices. The median price of an existing home sold in Jun hit an all-time high of $363K, 23.4% higher than the price in Jun 2020. Much of that gain, however, is skewed due to the types of homes that are selling. Sales of homes priced between $100-250K fell 16% annually. Sales of homes priced at $750K-$1M jumped 119%. “At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,” Yun added. “Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”
Sales of existing homes rise slightly as more listings finally hit the market
Dow Jones Industrials
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