Stocks are trading mixed following yesterday’s steep sell-off. The market has struggled for direction, as the S&P fluctuates between gains and losses. The Dow was 0.5% higher at the open before losing steam.
Investors are digesting remarks from Treasury Secretary Steven Mnuchin and Fed Chairman Jerome Powell. Mnuchin offered an upbeat view of the economic recovery, but he noted that a stimulus package might still be needed. We can’t agree more. Powell reiterated the central bank is ready to support the economy “for as long as it takes.”
Right now, the S&P 500 and Nasdaq are up 0.26% and 0.62%, respectively. The Dow is down 0.16%, as Goldman Sachs (GS) and JP Morgan (JPM) are falling more than 1%.
S&P 500 Index
Communication Services (XLC)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Health Care (XLV)
Real Estate (XLRE)
August Existing Home Sales
The housing market continues to deliver strong gains with existing sales jumping to the highest level since August 2006. Gains were in all regions, but the most compelling was in the Northeast, as lockdowns eased.
- Existing home sales 6.00M vs 5.96M consensus
- First time buyers +33%
- All Cash accounted 18% vs 16% July
The length a home sat on the market slipped to 22 days, tying a previous low. NAR’s chief economist, Lawrence Yun, said new construction needs to happen to avoid more supply constraints. "Housing demand is robust, but supply is not, and this imbalance will inevitably harm affordability and hinder ownership opportunities," said Yum. He added, "To assure broad gains in homeownership, more new homes need to be constructed."