The Dow Jones Industrial Average (DJIA) declined 42 points (0.2%) to 24,658, the S&P 500 Index gained 5 points (0.2%) to 2,767, and the NASDAQ Composite advanced 56 points (0.7%) to 7,782. In moderately-heavy volume, 776 million shares were traded on the NYSE and 2.3 billion shares changed hands on the NASDAQ. WTI crude oil traded $0.80 higher to $65.87 per barrel and wholesale gasoline was down $0.02 at $2.02 per gallon. Elsewhere, the Bloomberg gold spot price ticked $5.32 lower to $1,269.34 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was nearly unchanged at 95.09.
Existing-home sales in May declined 0.4% month-over-month (m/m) to a 5.43 million annual rate, compared to the Bloomberg forecast of a 5.52 million pace, and versus April’s downwardly revised 5.45 million rate. Sales of single-family homes declined 0.6% m/m, and were 3.0% below year-ago levels, while purchases of multi-family structures increased 1.6%, and were down 3.1% y/y. The median existing-home price was up 4.9% y/y at an all-time high of $264,800, marking the 75th straight month of gains. Unsold inventory came in at a 4.1-months pace at the current sales rate, down from 4.2 months a year ago. Inventory of homes for sale increased 2.8% m/m but was still 6.1% lower y/y. Sales declined in the Midwest, South and the West, and were up in the Northeast. Existing home sales account for the majority of the housing sales market.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) that releases the report, said a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year. However, he added that incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.
Treasuries dipped, with the yield on the 2-year note ticking 1 basis point (basis point) higher to 2.56%, and the yields on the 10-year note and the 30-year bond rising 4 basis points to 2.93% and 3.07%, respectively.
Treasury yields ticked higher and the global stock markets recovered a bit from the recent trade-fueled pressure, while the U.S. dollar paused amid the escalated trade tensions between China and the U.S.
Schwab Center for Financial Research – Market Analysis Group
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