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Housing Starts, CPI Data In-Line, Dick's Outperforms
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Tuesday, August 16, 2016
This morning, we see reports on Housing Starts and Building Permits, as well as the Consumer Price Index (CPI). At first blush, we’re seeing numbers in-line with expectations; thus, market futures are not being shaken up by the results.
Housing Starts rose 2.1% in July to an annualized rate of 1.21 million, whereas 1.18 million had been expected. We continue to see a drop year over year in multi-family housing (which had been the growth driver in previous quarters). Single-family housing remains down roughly 25% from the historical average; we see no pop in this segment from July.
Building Permits dipped 0.1% to 1.152 million, which is slightly below estimates. This follows improved builder confidence reported yesterday, although it should be pointed out this has to do with the higher-cost end of the market; entry-level housing growth remained elusive in July.
CPI for July was expected to be unchanged, and that’s exactly what was delivered: UNCHED. Minus food and energy costs, this figure bumps to +0.1% (+0.2% was expected). Year over year, CPI is up 2.2% ex-food & energy, marking the 9th straight month with a consumer price index at 2% or higher. Inflation-wise, it’s tough to demonstrate steadiness more clearly.
As mentioned, we haven’t seen market futures much affected by these results — currently, the Dow looks to open down 44 points, the Nasdaq -10.25 and the S&P 500 -5. Overnight we saw markets down slightly across Europe between 0.38 and 0.87%.
Not much to shake the needle either way, but the pre-market downward pressure is most likely a function of hitting new highs during Monday trading without a new catalyst to push equities higher in the near-term.
Then again, we see some better-than-expected earnings results from another couple major specialty retailers. Actually, Home Depot (HD - Free Report) reported bottom-line profits that matched the $1.97 expected on slightly improved revenues to $26.472 billion. Dick’s Sporting Goods (DKS - Free Report) easily topped earnings expectations by reporting 82 cents per share (69 cents was expected), and raised guidance for its fiscal year; shares of Dick’s have blossomed 8.5% in early trading.
Mark Vickery Senior Editor
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Housing Starts, CPI Data In-Line, Dick's Outperforms
Tuesday, August 16, 2016
This morning, we see reports on Housing Starts and Building Permits, as well as the Consumer Price Index (CPI). At first blush, we’re seeing numbers in-line with expectations; thus, market futures are not being shaken up by the results.
Housing Starts rose 2.1% in July to an annualized rate of 1.21 million, whereas 1.18 million had been expected. We continue to see a drop year over year in multi-family housing (which had been the growth driver in previous quarters). Single-family housing remains down roughly 25% from the historical average; we see no pop in this segment from July.
Building Permits dipped 0.1% to 1.152 million, which is slightly below estimates. This follows improved builder confidence reported yesterday, although it should be pointed out this has to do with the higher-cost end of the market; entry-level housing growth remained elusive in July.
CPI for July was expected to be unchanged, and that’s exactly what was delivered: UNCHED. Minus food and energy costs, this figure bumps to +0.1% (+0.2% was expected). Year over year, CPI is up 2.2% ex-food & energy, marking the 9th straight month with a consumer price index at 2% or higher. Inflation-wise, it’s tough to demonstrate steadiness more clearly.
As mentioned, we haven’t seen market futures much affected by these results — currently, the Dow looks to open down 44 points, the Nasdaq -10.25 and the S&P 500 -5. Overnight we saw markets down slightly across Europe between 0.38 and 0.87%.
Not much to shake the needle either way, but the pre-market downward pressure is most likely a function of hitting new highs during Monday trading without a new catalyst to push equities higher in the near-term.
Then again, we see some better-than-expected earnings results from another couple major specialty retailers. Actually, Home Depot (HD - Free Report) reported bottom-line profits that matched the $1.97 expected on slightly improved revenues to $26.472 billion. Dick’s Sporting Goods (DKS - Free Report) easily topped earnings expectations by reporting 82 cents per share (69 cents was expected), and raised guidance for its fiscal year; shares of Dick’s have blossomed 8.5% in early trading.
Mark Vickery
Senior Editor