Hold onto your coffee cups, 'cause we're kicking off the day with GREAT news! GDP soars to 2.4% in Q2 2023. This is up from 2% in Q1. The “for sure recession" is nowhere in sight - it vanished like a magician's trick!
Market
Prices as of 4 pm EST, 7/26/23
Macro
Sales of new single-family US homes fell 2.5% in June to 697k.
The previous month’s sales were also revised down significantly from 763k to 715k.
The median sales price fell 4% YoY to $415,400.
Keeping the market tight is a shortage of inventory.
In fact, according to John Burns, there are 600k more realtors in the US than there are homes for sale:
John Burns
The Fed raised interest rates to the highest in 21 years yesterday.
FOMC officials voted unanimously to hike by 25bps to 5.25-5.50.
The move surprised exactly no one.
At the presser, Powell stressed upcoming meetings would be “live” (i..e, no decisions have been made).
He suggested that target inflation (2%) wouldn’t be reached until at least 2025.
He also noted that staff are no longer predicting a recession as their base case.
NYT
Stocks
As we noted yesterday, the Fed’s rate increase was mostly priced in ahead of the official decision.
If yesterday’s hike proves to be the last, what can we expect from stocks?
The S&P has gained an average of 7.6% in the 12 months following the end of a rate hike cycle (chart).
Zooming out further, the S&P has gained an average ...Full story available on Benzinga.com
Related tickers: INTC, BA, BMY, HON, MA, MCD, CMSA, MDLZ, ABBV, TMUS, LIN, SPGI, META, TTE.
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