From Reuters this morning- more worthless economic "news":
WASHINGTON (Reuters) – Sales of newly constructed U.S. single-family homes in July were lower than economists expected but rose from a June pace that was the slowest in nearly 17 years, a government report showed on Tuesday.
Economists polled by Reuters were expecting to sales to remain unchanged at the 530,000 annual pace first reported for June. The actual sales pace in July of 515,000 climbed from the revised June level of 503,000, which was the lowest since a 487,000 pace in September 1991.
It’s hard to get real excited about that increase when you read the actual report from the Commerce Department:
Sales of new one-family houses in July 2008 were at a seasonally adjusted annual rate of 515,000, according to estimatesreleased jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 2.4 percent (±11.6%)* above the revised June rate of 503,000, but is 35.3 percent (±7.3%) below the July 2007 estimate of 796,000.
Note that this purported month to month "increase" is way less than the margin of error. The year-over-year 35.3% drop, however, is not.
Dollars to donuts this "rise" is revised downward next month anyway.
Reuters said:
U.S. stocks and the dollar moved higher after the home sales data and a stronger-than-expected consumer confidence report.
I don’t see what they are getting worked up about.
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Hasn’t this been discussed by all the “professionals”. Summer months see an uptick in sales and July should always outpace June (here is my impressive logic moment) because it is one month later into the summer. Its the yoy numbers that suck wind and in my opinion need to suck more wind to right the ship.
That isn’t why stocks are up.
Stocks are trading day to day on technical indicators, not fundamental ones, and have been for at least the last year.
So, stocks are up primarily because they were down a bunch yesterday, and shorts are taking profits, while longs are seeing stuff that’s “cheap” – at least for today. This freakish need to assign a “narrative” to stock moves will really confuse you, if you believe in it.
It is the freakish need for advertising revenue and the eyeballs that can justify the expenditure.
Nothing but statistical fudging and MSM propaganda. Gotta keep us optimistic and moving forward. Negative is really positive if you spin it the “right” way.
Maybe Dollars to Timbits works, but I think inflation has pretty well reversed the sense of Dollars to Donuts by now
and three guesses as to which metro area had the biggest drop from may to june. miami? nope. las vegas? nope. detroit? nope. that right, PHOENIX sportsfans. -2.6%, and -28% year over year.
in other words, when the local realtor simpletons are telling us that the worst is over, they are for the Nth time, incorrect. ahem.