$DIA, $SPY, $QQQ, $RUTX, $VXX
US household wealth kept rising in Q-2, though at a slower pace than at the start of the year, as the stock market hit fresh highs and home-price gains remained intact.
Net worth for households and non-profit groups increased $1.83-T, or 1.6%, to $113.5-T after an upwardly revised 5% gainer in the prior period, Federal Reserve data showed.
Household debt growth accelerated to a 4.3% annual pace, the fastest since Y 2017, from a downwardly revised 2.1% rate in the prior Quarter.
Key Insights from the Report
- US stocks rose at a slower pace in Q-2 following a sharp rebound in the prior 3 months, on increasing calls for the Fed to cut interest rates and then-cooling trade tensions with China. Property values, a Key source of wealth, also decelerated but kept rising amid a shortage of inventory and lower mortgage rates.
- The value of equities directly and indirectly held by households and nonprofit groups increased $893.7-B from the prior Quarter. The value of real estate rose $257-B.
- Total business debt climbed at a 4.4% annual pace, to $15.7-T. Such obligations are the equivalent of almost 75% of GDP (gross domestic product).
- Fed Chairman Powell said in a press conference last week that business-sector debt relative to GDP is high, though companies have also grown. “That’s a real issue, but what it really represents is a potential amplifier of a macroeconomic downturn,” though it would not be the cause a downturn. He added that “households are in very strong shape.”
- Consumer debt growth accelerated, with mortgages rising at a 3.2% pace and other credit rising 4.6%. That lifted the total household debt to $15.8-T with non-mortgage credit edging up to $4.1-T.
- Federal government debt increased at a 2.1% annual rate after jumping 9.8% the prior Quarter. The federal deficit is projected to widen to $1-T by FY 2020. State and local government debt was down 2.5%, the 6th straight decliner and biggest drop since Q-1 of Y 2018.
Monday, the major US stock market indexes finished flat at: DJIA +14.92 at 26949.99, NAS Comp -5.21 at 8112.46, S&P 500 -0.29 at 2991.82
Volume: Trade on the NYSE came in at 821-M/shares exchanged
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral with a Bullish bias with Key indicator MACD Very Bullish in here.
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