Economic data continues to slow in the US

Highlights:

Market Summary: The global stock market (VT) was up 0.21% yesterday. The top performing broad stock market was the Nasdaq 100 (QQQ), finishing higher by 0.97%. Gold was also stronger on the day, closing up 0.71%. The worst performing segment of the market was transportation equities (IYT), which closed lower -0.49%.

Durable Goods: Durable goods orders were down -1.13% month-over-month. The GM strike and Boeing debacle exacerbated the headline decline. Nevertheless, economic data continues to slow in the U.S.

New Single-Family Homes Sold: New home sales were down -0.71% month-over-month. 701k homes were sold last month, down from 706k the month prior. Lower mortgage rates have helped home sales rebound from the sharp slowdown we saw in 2018.

Homebuilders: The homebuilding sector (XHB) is in a strong positive trend relative to the broad market. Relative to the S&P 500, XHB was up 0.63% yesterday and is firmly above its 200-day moving average. A continued uptrend in homebuilders could suggest consumer strength and a potential rebound in U.S. economic activity.

Chart of the Day: The three-month moving average of core capex orders are now down year-over-year. Hopefully a rebound will occur, and this is just a slowdown. If not, the decline in capex could suggest a contraction is on deck.

 

Futures Summary:

 

News from Bloomberg:

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U.S. stock futures edged up, shares in Europe fell and Asian shares were steady as earnings season gives investors a mixed picture of how corporations are coping with slowing growth in the global economy, trade tension and Brexit. The dollar fell. Treasuries and gold were steady. Oil declined.