The market seems genuinely happy this morning. Go figure. Maybe it liked the news about durable goods in May.
US orders for durable goods rose 1.1 percent in May, measure of business investment increased.
This kind of news is just the tonic for a market bed ridden with fear about that continent across the Atlantic, the one with ailing banks and economically failing countries. It is just the kind of news market players pay attention to because the data says something important about the fundamentals of economic growth – the manufacturing cycle is turning up …
The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, rose 5.9 percent to 101.1. The index level matched the two-year high reached in March, while the gain was the largest since October 2011.
Another sign the housing market is finding its legs again. True, the issue of inventory and pending foreclosures are still a problem, but over time, as the market improves, these issues will slowly heal. The market is heating up and in that is market opportunity.
Lennar [U.S. homebuilder] reported a rise in new orders for the fifth straight quarter and said a slow and steady recovery was underway in the housing market.
This news is not just data; it is actual sales in a market plagued from a lack of sales. I trust the assessment as it comes from a company that monitors the market closely, daily in fact, and it has its pulse right on the wrist. Maybe this news is making the market happy today. If not, the market should be happy about the data below.
- Americans are now spending roughly $200 million per day less on gas than in early April, when gas peaked at $3.94 per gallon. And analysts are expecting further declines. One economist on Tuesday forecast the national average will fall to $3.10 per gallon.
- MasterCard SpendingPulse, which tracks gasoline purchases around the country, said Americans have bought less gas for a record 66 weeks in a row.
- Fuel consumption was 3.5 percent below the year-earlier level, the 43rd straight drop in that measure. Year-to-date gasoline demand is 4.7 percent below 2011.
Can you hear the money flowing from necessary spending to discretionary spending? Currently, that flow is about $1.5 billion a week, and if gas prices keep dropping, the number will only increase. Talk about an economic stimulus …
Americans are getting older. This reality has pushed a multi-faceted industry dedicated to taking care of the old ones in society. The market has treated many of these companies well. It occurs to me the following statistic presents the same market opportunity created as Americans age, only the aging is found in electronic parts and cosmetic repairs.
Feel like you’re driving an old car? You’re not alone. In fact, the average age of vehicles in the U.S. has hit a new all-time high at 11 years.
Yup, if folks are keeping their cars longer, they must be keeping them running longer as well, and, for many, keeping them pretty is important as well. Sounds like money flowing to me.
Trade in the day; Invest in your life
