Energy Stocks Lead the Market Higher

The stock market is up again this morning. The energy stocks are leading the charge. Many of the big-name oil stocks are up 3% or more while the rest of the market is up just a bit.

In the crypto-world, bitcoin is back above $50,000. Just over a month ago, it slipped below $30,000. Given bitcoin’s volatility, this could all change in a few days.

The Federal Reserve has its big Jackson Hole conference this week. The meeting runs from Thursday to Saturday. Fed watchers everywhere are watching for news. If I had to guess, I think it’s slightly early to hear any tapering news from the Fed. Maybe around Thanksgiving.

This morning’s existing-home sales report rose for the second month in a row. One bright spot is that housing inventory is down 12% over the last year. The median price for an existing home is now $359,900. That’s up 17.8% in the last year.

“The housing sector appears to be settling down,” said Lawrence Yun, chief economist for the Realtors. “The market is less intensely heated as before.”

It may be cooling, but it still appears to be competitive. Homes are spending, on average, just 17 days on the market. First-time buyers represented just 30% of the market, whereas they are usually around 40% historically. Nearly a quarter of all buyers are using all-cash, also a higher share than normal.

The latest read on sales of newly built homes from June showed a sharp decline both monthly and annually, according to the U.S. Census. That data set is based on signed contracts, so it is looking at roughly the same activity as the July data on existing homes. Newly built homes come at a price premium to similar-sized existing homes, and builders say they are now seeing even more buyers unable to afford what they would like.

Posted by on August 23rd, 2021 at 10:45 am


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