Home Construction Rose 3.6% in May

Fed Day is here. The Federal Reserve’s policy statement is due out at 2 pm ET. The statement will include updated economic projections. Jerome Powell will also hold a press conference.

This morning’s housing report showed that home construction rose by 3.6% last month. That was below expectations.

It appears that the soaring cost of lumber is having an impact. Interestingly, lumber has been falling sharply for the last few days.

Applications for building permits dropped by 3% in May. That’s often an indicator of future construction.

Here’s an interesting fact: the IPO market for this year is already on pace to break last year’s record, even though this year isn’t quite half over.

The IPO gold rush is set to reach new heights in the second half of 2021, as a number of high-profile startups such as China’s largest ride-sharing company Didi Chuxing Technology Co Ltd, online brokerage Robinhood Markets Inc and electric-vehicle maker Rivian Automative LLC prepare to launch multi-billion dollar share sales.

“If the markets hang in anywhere near where they are right now, we are going to be incredibly busy this summer, and into the fall with IPOs,” said Eddie Molloy, co-head of equity capital markets for the Americas at Morgan Stanley.

Posted by on June 16th, 2021 at 10:48 am


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