Stocks are higher in today’s session as investors looked beyond a weak set of economic data and mixed earnings results. The star of the day is Robinhood’s (HOOD) IPO, but it has struggled on its debut. The stock was down as much as 12% from its IPO open of $38 before moving its way back up, now off just 2%.
Pending home sales (signed contracts) came weaker than expected, falling -1.9% and below consensus of +0.1%. Prospective buyers are still being challenged by low inventories and high asking prices.
May Pending Home Sales Regional Breakdown
June saw the West and South retreat on a month-over-month basis.
- Northeast 98.5% vs 98%
- Midwest 108.3% vs 107.7%
- South 132.4% vs 136.5%
- West 98.1% vs 102%
To see the chart, click here.
The American Association of Individual Investors (AAII) updated its weekly sentiment survey and there was a sharp increase in bullishness. The intriguing part is how investors are shifting to a neutral sentiment when things get rough rather than rushing to bearishness. This could indicate that investors are rejecting panicky message of Wall Street and the financial media.