(As of 7:30 am pacific)
The market is lower today as European news dominates a
strong US housing report. Home prices
rose 2.3% in June for the largest back-to-back monthly gains in nearly a
decade. We’ve been seeing some strong
reports in the past few months that indicate the housing market has perhaps
finally hit bottom. Sales are up,
building permits are rising, and now home prices are picking up as well. It wasn’t enough however to bring confidence
to the market as another report showed consumer confidence in the US fell to a
10 month low. With higher gas prices,
unchanged jobless rates, and flat incomes, consumers are less confident in the
recovery of our economy. Europe was back
in the news today as a report showed Spain’s recession is deepening. Spanish GDP contracted at a faster pace than
expected in the 2nd quarter and year over year. Concerns over the global economic slowdown
were heightened after Japan’s government cut its economic forecast today for
the first time this year. The
announcement dragged Asian and European markets lower. The US dollar is mixed, while oil is up and
gold is down. Interest rates are down. Markets are having a difficult time finding
direction at home today as investors consider today’s housing report, the
kickoff of the Republican convention today in Tampa, and the frightening
prospect of tropical storm Isaac making landfall later this afternoon.
