The market came out the gate with the kind of caution we have become accustomed of late. Growth was leading the way until news that the city of Washington, D.C. is suing Amazon over its business practices. It looked like Amazon (AMZN) was going to take off, but not anymore. The news is a reminder of political risks, but it’s not a major financial blow in of itself.
AMZN 5-day chart
Housing Boom Slowing?
This morning, more economic data releases missed Wall Street consensus. New Home sales came in at annualized rate of 863,000 from 917,000, which was a major revision lower from 1,021,000. Prices climbed to $372,400 from $310,100 a year earlier.
To see the chart, click here.
Future Confidence Waning
Consumer confidence of 117.2 was below consensus of 119. Consumers appear to really be worried about where things will be six months from now.
Consumer Confidence | May | Apr |
Present Conditions | 144.3 | 131.9 |
Expectations | 99.1 | 107.5 |
To see the chart, click here.
Interestingly all these developments are positive for the stock market, as they chip away at the notion of an overheated economy beyond the inflation surge.