Housing is not crashing. Just not enough houses for sale to disrupt the supply/ demand balance .
Stock market notches its longest consecutive win streak since 1987.
Let the good times roll!
The Fed raised interest rates by 25bps as expected by the markets. Bond prices held steady during Powell's presser where he left the door open for possible future rate hikes. We will still have two more job reports and two PCE and CPI readings before the September meeting. GDP came in higher than expected at 2.4%, an increase from the previous period of 2%. In addition, Initial Jobless claims came in at 221,000, lower than the predicted amount of 235,000. No recession until we hit 350,000 claims a week And we are not close to that.
Continuing claims also
came in lower than expected at 1.69M rather than the consensus of 1.75M. Durable Goods Orders reported being at 4.7% which was higher than the expectation of a 1% increase. Finally, the PCE deflator is being released tomorrow
which will provide more insight on inflation.
Fed trying to reach that target of 2% and if the LEI can start having a positive reading that would sure help. It's declined something like 15 consecutive months. 😃 Still a lot of good things happening.