The market has been meandering all session long, which is not a big deal all things considered. The Dow is actually a victim of its announced changes. All three of the names being jettisoned, ExxonMobil (XOM),Pfizer (PFE), and Raytheon (RTX), are getting hit today, and their replacements are up, but are not in the index yet.
Economic Data
New home sales crushed consensus estimates. Talk about a recovery. This New Homes Sales recovery is substantially more than a v-shaped rebound...might need to look at the Vulcan alphabet for the right letter.
- Sales grew 13.9% month to month versus consensus of 1.4%
- Sales year over year surged 36%
- Median new home prices $330,600
- Less than 4 months’ supply (six months is considered normal)
To see the chart, click here.
Markets are fine in this holding pattern until the Fed gathering, which is normally at Jackson Hole, but this year will be virtual. I’m looking for fireworks.
For now, however, I think the pedestrian pace holds up for the remainder of the session.