What we’re reading (7/11)
“U.S. Stocks End Lower Ahead Of Inflation Data, Earnings Season” (Wall Street Journal). “All three major indexes opened lower, regained some ground and then lost steam into the close. The S&P 500 fell 44.95 points, or 1.2%, to 3854.43. The blue-chip Dow Jones Industrial Average lost 164.31 points, or 0.5%, to finish at 31173.84. The Nasdaq Composite Index shed 262.71, or 2.3%, to 11372.60 as technology stocks lost ground.”
“US Job Market Provides Hopeful Signs Against Recession And Inflation, But Other Data Are Worrisome” (Jason Furman and Wilson Powell, The Peterson Institute). “The employment report strongly suggests that the economy was not in recession in the first half of 2022. At the same time, however, it provides only limited reassurance about the future because previous recessions were not always evident in the employment data several months prior to the peak.”
“Is South Florida's Housing Market Too Hot?” (Reason). “Already in 2019, some were sounding the alarm about Miami's rising housing prices. One study commissioned by the housing group Miami Houses for All in collaboration with city and county officials found that Miami was the third-most expensive metropolitan area in the entire country for housing costs. The same study found that over 50 percent of households in Miami were spending more than they could afford on rents and mortgage payments.”
“Homebuyers Are Canceling Deals At The Highest Rate Since The Start Of The Pandemic” (CNBC). “The share of sale agreements on existing homes canceled in June was just under 15% of all homes that went under contract, according to a new report from Redfin. That is the highest share since early 2020, when homebuying paused immediately, albeit briefly. Cancelations were at about 11% one year ago.”
“Is The Stock Market Slump A Buying Opportunity?” (Dealbreaker). “Savvy investors know that time after time, again and again, a bad stock market inevitably turns itself around and surges back into the black. When that will happen is anyone’s guess. It could be coming faster than you might think though, especially if the Fed successfully engineers that soft landing they’ve been shooting for. When the stock market recovery does come, you definitely don’t want to be left behind. So, stick in there, stay with it, and try not to give in to all the economic gloom.”
