This day in history – August 16

1977 – Elvis Presley, the King of Rock ‘n Roll, is found dead on the bathroom floor of his Graceland Mansion in Memphis. He was 42 years old. Despite declining health in his final years, Presley continues to tour extensively, with 100 shows in 1976 and 55 more in 1977 before is death. (In fact he is scheduled to fly out on yet another tour the night of his death.) Overweight and taking numerous prescription drugs, there are times when he can barely remember the words he is supposed to sing. Still, his concerts continue to sell-out, and a reported 80,000 people line the streets for his funeral procession. Presley remains to this day the greatest selling solo artist of all time.
http://www.youtube.com/watch?v=3JxrzO3sNTY

1974 – The Ramones make their first appearance at New York City’s famous music club CBGB. A vanguard of the punk rock genre, The Ramones find limited commercial success but are often hailed as one of the most influential punk rock bands ever, and even place 26 on Rolling Stone Magazine’s top 100 artists of all time list. I never got the attraction, to be honest, although I did find their 1979 movie Rock ‘n roll High School to be amusing when I was a teenager. And for some reason I find Blitzkreig Bop to be oddly likeable.
http://www.youtube.com/watch?v=TYh1lRR1m6Y

1955 – US singer/entertainer and activist Paul Robeson is denied his appeal to force the US to issue him a passport. One of the most famous black entertainers in the world, he had become controversial for of his outspoken criticism of US civil rights policies and for his support for the Soviet Union, which included a tribute to “the great Stalin” upon the death of the Soviet dictator in 1953. His passport was initially denied in 1950 while he was investigated for communist ties, and while he was finally allowed to travel in 1958, he remained under FBI investigation until his death in 1976. As an entertainer, Robeson is perhaps most well known for his renditions of ‘Ol Man River.

1948 – Yankee and home run king George Herman “Babe” Ruth dies of cancer at the age of 53. Ruth had been a member of the early New York baseball dynasty of the 1920’s and 30’s, and held the record for most career home runs (714) for 39 years, until it was broken by Hank Aaron in 1974. Regarded as the first true sports celebrity, Ruth once famously quipped, when asked about the fact that he made more money than President Hoover, “I had a better year.” Ruth’s body lays in state in front of Yankee Stadium for 2 days, as more than 10,000 file past to see him for the last time.

1896 – While salmon fishing in Canada’s Yukon territory, George Carmack and his two companions discover gold in a creek bed near the Klondike River. Over the next two years “Kloondike fever” will run rampant and 50,000 people will travel to the area in search of gold, marking the last major gold rush of the American west. Among the 50,000 is a young man named Jack London, who fails to find gold but uses his experiences to become a renowned writer of short stories. Large scale mining would continue in the area until 1966, producing some $250 million in gold.

Morning Report – Housing starts increase 8/16/13

Vital Statistics:

 

  Last Change Percent
S&P Futures  1659.4 3.7 0.22%
Eurostoxx Index 2837.6 1.8 0.06%
Oil (WTI) 107.6 0.2 0.21%
LIBOR 0.264 0.001 0.34%
US Dollar Index (DXY) 81.26 0.076 0.09%
10 Year Govt Bond Yield 2.79% 0.02%  
Current Coupon Ginnie Mae TBA 103.9 -0.2  
Current Coupon Fannie Mae TBA 102.9 -0.2  
RPX Composite Real Estate Index 200.7 -0.2  
BankRate 30 Year Fixed Rate Mortgage 4.52    

 

Markets are stronger after yesterday’s bloodbath, although bonds / MBS are still heavy.
 
Housing starts came in at 896k, slightly below the 900k estimate. Building permits increased to 943k. Multi-fam construction drove the increase. Single Family starts actually fell. I am having a tough time reconciling the housing starts numbers with the order growth being reported by the homebuilders. We should be seeing faster housing start growth than we are. Maybe it is just that lead times are longer.
 
Productivity and Unit Labor costs both rose more than expected. Employee hours increased, as did compensation. 
 
CFPB Monitor has its take on the new QRM rule, along with speculation that the CFPB may raise the required downpayment to 30%. 
 
The MR will be spotty the next two weeks as I will be on the West Coast.