Markets ended last week on mixed footing as traders balanced positive housing and energy data with lingering concerns over tariffs and labor market weakness. The NASDAQ and S&P 500 managed to hold near record highs, lifted by technology and consumer discretionary stocks, while the Dow and Russell 2000 struggled to hold momentum. Bond yields slipped lower as demand for Treasuries increased, and gold prices advanced for a second week as some speculators bought into the perceived haven. Oil prices edged slightly higher but remain down more than 11% year-to-date, while the dollar ticked modestly lower.
Last Week’s Economic News
- Residential building permits fell in July and were down some from a year earlier. Single-family permits, however, were slightly above June’s pace. Housing starts rose in July and were considerably higher than in July 2024. Housing completions climbed for the month but remain similarly below year-ago levels.
- Existing home sales increased in July and were a bit above the July 2024 estimate. Single-family home sales and prices showed similar gains, though inventory slipped modestly to a 4.5-month supply.
- The national average retail price for regular gasoline was $3.125 per gallon on August 18, which is considerably below the price a year ago.
- For the week ended August 16, new claims for unemployment insurance are at 235,000. Continuing claims are at the highest level since November 2021.
Eye on the Week Ahead
This week brings the second estimate of second-quarter GDP, following an initial report showing growth of 3.0%. Markets will also watch July’s Personal Income and Expenditures report, which includes the Federal Reserve’s preferred inflation gauge, the PCE price index. These data releases will provide further insight into consumer strength and inflationary trends heading into the fall.
Have a nice week!
Sincerely,
Robert G. Carpenter