… recently released figures indicate that retail sales in May increased by 17.7%, and that is the biggest monthly gainer ever. This number re-enforces the forecast that a V shaped recovery from the instant recession has begun.
This means that as construction reopens we seeing the positives.
Housing starts rose moderately in May, led by a major recovery in the West and a solid gain in the Northeast. However, weakness persisted in the South and Midwest.
The Big Q: Why am I so optimistic?
The Big A: Simple, housing permit requests are soaring. They were up sharply in May and have are now only 15% below the February marks and will be made up fast.
What is more important is that for the last 3 months, permits were running about 15% above starts. That gap points augurs a strong increase in construction over the next 2 of months.
Home construction and housing overall will be solid going forward was a report by the Mortgage Bankers Association. As noted, “Purchase applications increased to the highest level in over 11 yrs and for the 9th consecutive week. The housing market continues to experience the release of unrealized pent-up demand from earlier this spring, as well as a gradual improvement in consumer confidence”.
Wednesday, the major US stock market indexes finished at: DJIA -170.37 to 26119.63, Nasdaq +14.66 at 9910.54, S&P 500 -11.25 to 3113.36
Volume: Trade on the NYSE came in at 1-B/shares exchanged
- NAS Comp +10.5% YTD
- S&P 500 -3.6% YTD
- DJIA -8.5% YTD
- Russell 2000 -14.5% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Very Bullish in here.
Looking Ahead: Investors will receive the weekly Initial and Continuing Claims report and the Philadelphia Fed Index for June Thursday.
Have a healthy day, Keep the Faith!