The US Housing Market, Brexit, And The Market Goes Up

The Fed is silent, not a peep from China, and oil is quietly waiting for the US inventory report to arrive. So what gives? Why is the market popping big today?

- New U.S. single-family home sales surged to a more than eight-year high in April and prices hit a record high.

- The usually strong spring housing market could be far stronger this year, if only there were more homes for sale. The number of listings continues to drop, as demand outstrips supply.

Combined, the above sends a powerful message to savvy investors – buy the dips. The US economy is way stronger than the breathless media contends and not bound for recession as some analysts and talking heads suggest.

- Toll Brothers (TOL) reported quarterly revenue that jumped nearly 31 percent, beating analysts' estimates, as the company sold more luxury homes at higher prices, mainly in California.

Home builders cannot even keep up with the demand, which suggests this question: where is the money coming from that is driving the high demand? Answer: Jobs and a tightening labor market, which just about says it all, now doesn’t it?

- A poll from ORB published in Tuesday's edition of the Telegraph newspaper showed that, among those who definitely plan to vote, support for Britain remaining in the European Union stood at 55 percent, while that for Brexit was at 42 percent.

The above just might be another reason the market is jumping today. Anyone who understands the consequences of Brexit should be happy, most of all investors.