Stocks are lower this morning after WalMart earnings disappoint. Bonds and MBS are down small
Housing Starts were more or less flat in July at just over 1.2 million. June was revised higher. Multi-fam starts dropped while single family rose. Building Permits fell however from 1.33 million to 1.12 million. Multi-family permits accounted for almost all of the drop. Goldman took up their Q3 GDP tracking estimate from 2.2% to 2.4% on the number.
Speaking of housing, the Home Despot reported better than expected earnings this morning as well. An improving housing market is encouraging people to spend on renovations.
PIMCO expects housing to grow at 10% for the next 2 – 3 years. Household formation is picking up, and we have simply underbuilt for a long time.
Filed under: Morning Report |