The CML Close - Stocks mixed, oil down, housing starts and building permits drop, industrial and manufacturing production comes in soft - 08-16-2022
Markets
Stocks mixed and crude oil fell.
Home buyers are backing out of deals at a record pace, while housing starts and building permits dropped below estimates and multi-month lows.
| • SPX | 4,305.20 | +8.06 | (+0.19%) |
| • NASD | 13,102.55 | -25.50 | (-0.19%) |
| • DJIA | 34,152.01 | +239.57 | (+0.71%) |
| • R2K | 2,020.53 | -0.82 | (-0.04%) |
| • VIX | 19.68 | -0.27 | (-1.35%) |
| • Oil | 86.80 | -2.61 | (-2.92%) |
• Housing starts in the United States came in the lowest since February of 2021 and below expectations.
• Building permits in the US decreased to their the lowest level since September 2021.
• On its earnings call Walmart noted that it has canceled billions of dollars of orders and sees new price cuts some some goods to pare inventory.
• Walmart and Home Depot showed consumer spending could remain strong enough to keep the economy from tipping over into a downturn.
• Both industrial production and manufacturing production fell to their lowest levels since January 2022.
Headlines of the Day
Dow closes 200 points higher on Tuesday for fifth day of gains, buoyed by Walmart and Home Depot
The Dow Jones Industrial Average rallied on Tuesday, rising for a fifth day as earnings results from Walmart and Home Depot showed consumer spending could remain strong enough to keep the economy from tipping over into a downturn.
Homebuyers are backing out of more deals as high mortgage rates persist and recession fears linger
Homebuilder cancellation rates have more than doubled since April, according to surveys by John Burns Real Estate Consulting. It is the highest rate ever excluding the first two months of COVID.
US Retail Cargo Seen Cooling in Second Half as Inflation, Rates Bite
Retail Federation sees slow economic growth affecting imports. US to import 2% more cargo in 2022 from 2021, another record.
Walmart Revenue, Profit Rise as Higher Prices Lift Business.
The retail giant’s quarterly results benefited from higher prices and from consumers stepping up shopping trips to its stores.
UK Economists See Growing Recession Risk With Jump in Inflation
Chance of slump up from 45% as cost of living crisis worsens. BOE expected to deliver another half-point hike in September.
Economic Data Results for 8-15-2022
Housing Starts JUL
Housing starts in the United States tumbled 9.6 percent month-over-month to an annualized rate of 1.446 million units in July of 2022, the lowest since February of 2021 and well below market expectations of 1.54 million.
Building Permits JUL
Building permits in the US, a proxy for future construction, decreased 1.3% to an annualized rate of 1.674 million in July of 2022, the lowest level since September last year, compared to forecasts of 1.65 million.
United States Industrial Production
Industrial Production in the United States increased 3.9 percent year-on-year in July of 2022, the smallest annual gain since January.
United States Manufacturing Production
Manufacturing production in the United States increased 3.2 percent year-on-year in July of 2022, the least since January.
Economic Data Due Tomorrow on 8-16-2022
Retail Sales MoM JUL
United States MBA Purchase Index
United States MBA Mortgage Market Index
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