What, me worry? Housing starts/building permits, UMich
S&P 500, Dow edge red, Nasdaq ~flat
Comm Svcs leads S&P 500 sector gainers; Materials down most
Euro STOXX 600 index up ~0.3%
Dollar lower; crude down >2%; gold up ~1%; bitcoin up ~3%
U.S. 10-Year Treasury yield edges down to ~3.91%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
WHAT, ME WORRY? HOUSING STARTS/BUILDING PERMITS, UMICH
Data released at the conclusion of a week jam-packed with the stuff offered continued assurance that while the economy might be softening at the hands of the Federal Reserve and its restrictive policy, the American consumer is alive and kicking.
Groundbreaking on new American homes USHST=ECI slid by 6.8% last month to 1.24 million units at a seasonally adjusted annualized rate (SAAR), or the lowest level since May 2020, at the height of the COVID panic.
The number landed 6.9% shy of consensus.
Meanwhile, building permits USBPE=ECI - considered among the more forward-looking housing indicators - dropped 4% to 1.40 million units SAAR, or 2.3% less than analysts expected.
Scratching beneath the headline, a 14.1% plunge in single-family housing starts (which account for the lion's share of the total) handily offset a 14.5% increase in multiple unit projects.
On the permits side, single-family projects held firm while multiple unit permits decreased by 11.1%.
The Commerce Department's report echoes the souring homebuilder sentiment data reported on Thursday by the National Association of Home Builders, and points to dwindling affordability amid elevated mortgage rates.
"A slowdown in single family construction will crimp new supply for a market already struggling with low inventory," writes Jeffrey Roach, chief economist at LPL Financial.
"Housing prices will likely stay elevated despite a broader economic slowdown," Roach adds. "However, we do expect mortgage rates to drop throughout this year as the Fed starts cutting rates."
Separately, the University of Michigan (UMich) released its preliminary stab at current-month consumer sentiment USUMSP=ECI, which offered a mild upside surprise.
The index added 1.4 points to land at 67.8 versus the more languid 0.5 point gain economists predicted.
While survey respondents' assessment of their current situation deteriorated by 2.9%, their near-term expectations more than made up for it by growing 4.8% sunnier.
According to Joanne Hsu, director of UMich's consumer surveys, much of the churn was partisan.
"With election developments dominating headlines this month, sentiment for Democrats climbed 6% in the wake of Harris replacing Biden as the Democratic nominee for president," Hsu writes. "For Republicans, sentiment moved in the opposite direction, falling 5% this month."
"Overall, expectations strengthened for both personal finances and the five-year economic outlook, which reached its highest reading in four months," Hsu added.
The near- and long-term inflation outlook was unchanged from July, with one-year and five-year expectations coming in at 2.9% and 3.0%, respectively, or about 1 percentage point warmer than Powell & Co's average annual 2% inflation target.
(Stephen Culp)
*****
FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:
S&P 500, NASDAQ ATTEMPT TO RISE FOR A SEVENTH-STRAIGHT DAY - CLICK HERE
BENCHMARK TREASURY YIELD: IS THE CLOUD NOW A CEILING? - CLICK HERE
FRENCH ASSETS STILL WEAK AFTER MACRON'S ELECTION GAMBLE - CLICK HERE
GILTS AND THE POUND COULD DROP FURTHER - CLICK HERE
STOXX SET FOR BIGGEST WEEKLY GAIN IN THREE MONTHS - CLICK HERE
EUROPE HEADS FOR BUOYANT END TO THE WEEK - CLICK HERE
GROWTH FEARS FADE AS QUICKLY AS THEY COME - CLICK HERE
Housing starts and building permits https://reut.rs/4dpS7gL
UMich https://reut.rs/3SSGN4u
UMich inflation expectations https://reut.rs/3WQVBBS
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
