Thoughts to Ponder and The Market Update June 12

 

Thoughts to Ponder . . .

• I’m going to stand outside, so if anybody asks for me, I’m outstanding.
• The other day when I was walking through the woods, I saw a rabbit standing in front of a candle making shadows of people on a tree.
• Your eyes water when you yawn because you miss your bed and it makes you sad.
• If you eat in the kitchen, your room is always clean, and if you go to sleep at 9 o’clock, it means you don’t have Internet!!
• You can stop driving me crazy, I can walk from here.

 

And Now on to The Market Update . . .

The stock market could not be flatter through the first four trading days of the week.

• The Dow began the week at 21,183, and closed at 21,182 yesterday.
• There have been some momentary jumps up and down during the week, but overall, investors seem to be sitting on the sidelines watching and waiting.
• There has, for the most part, been no economic data that gives them reason to think the market will improve or decline driving them to make a trading decision.
• It seems for now, until something comes out that creates an opportunity or urgency to trade, investors are going to hang back and observe.

 

Could even more life be coming back into the housing market?

• That is the question many are asking based upon the Mortgage Bankers Association latest loan application report.
• For the week ending June 2^nd, purchase applications jumped a seasonally adjusted 10.0 percent.
• This is the highest level of purchase loan activity since May of 2010.
• This jump follows 3 weeks of consecutive declines.
• Refinance applications also moved higher by 3.0 percent.
• Overall purchase loan activity is up a healthy 6.0 percent from the same time last year.

 

The first-time jobless claim numbers seem to just be staying put at a very low level.

• The latest report for claims was at 245,000.
• This is down by 3,000 from the prior week.
• Overall claims have been remaining in a very narrow range in the mid 200’s for months, and there appears to be no sign that this will change any time soon.

 

The latest JOLTS Report, (Job Openings and Labor Turnover Report), shows that job availability continues to greatly outpace hiring.

• There were an estimated 1 million more jobs available than positions filled in the month of April.
• Employers contend they are struggling to find employees with the jobs skills that meet the positions they have available.

 

The ISM non-manufacturing index came in just about as expected.

• At a level of 56.9, this is considered a very solid rate of growth that shows business activity remains strong.
• Hiring in this sector has grown, as there appears to be backlogs of delivery of services.
• Companies are scrambling to meet customer demand and are working hard to try to fill vacant positions to meet demand.

 

Finally, are consumers becoming more adverse to borrowing?

• The latest April data on credit growth shows that consumers seem to be borrowing less.
• Non-revolving debt, which rose 6.7 billion, is the lowest reading in nearly 6 years.
• Even though this includes vehicle financing and student loans, historically the amount of money being currently borrowed is very low.

 

This week’s potential market moving reports:

• Monday June 12^th – 10 Year Note Auction
• Tuesday June 13^th – FOMC Meeting Begins, Producer Price Index
• Wednesday June 14^th – MBA Mortgage Applications, CPI, FOMC Announcement
• Thursday June 15^th – First Time Jobless Claims, Housing Market Index
• Friday June 16^th – Housing Starts