Performance of the benchmark indexes was a mixed bag last week. Maybe investors are becoming immune to the ongoing trade battle between the United States and China, as threats of an additional $200 million in U.S. tariffs on Chinese imports didn’t seem to push investors away from stocks. The yield on 10-year Treasuries reached a four-month high last Thursday, ultimately closing at 3.06% by Friday afternoon, as prices for long-term bonds plummeted.
LAST WEEK’S ECONOMIC HEADLINES
- The housing market remained stagnant in August, although it is showing signs of gaining momentum. Existing home sales, which had declined four straight months, did not change in August from July. Sales are down 1.5% from a year ago. Sales picked up in the Northeast and Midwest, while remaining down in the South and West. The median price for existing homes in August was $264,800, up 4.6% from August 2017 ($253,100).
- Although applications for building permits fell in August, housing starts and completions notably increased. According to the latest report from the Census Bureau, building permits for privately owned housing units dropped 5.7% and permits for single family homes decreased 6.1% in August from July. On the other hand, housing starts for all housing types jumped 9.2% above July’s figures, while the start of construction for single family homes climbed 1.9% for the month. In what should add to new home inventory, housing completions rose 2.5% from July, led by an 11.6% increase in single family home completions.
- In the week ended September 15, the advance figure for seasonally adjusted initial claims for unemployment insurance was 201,000, a decrease of 3,000 from the previous week’s level. This is the lowest level for initial claims since November 15, 1969, when it was 197,000. According to the Department of Labor, the advance rate for insured unemployment claims remained at 1.2% for the week ended September 8. The advance number of those receiving unemployment insurance benefits during the week ended September 8 was 1,645,000, a decrease of 55,000 from the prior week’s level, which was revised up by 4,000. This is the lowest level for insured unemployment since August 4, 1973, when it was 1,633,000.
EYE ON THE WEEK AHEAD