Economic Reports & Market Observations 10/25/06
Falling Sept. Existing Home Sales -1.9% @ 6.18M vs prior Full Report
Inside the number: Sales have fallen for 6 months and are down 14.2% in the last year. Inventories fell -2.4% to 3.75M.
SFR sales -13.8% in the past year, the biggest decline in 11 years. Inventories of SFR's are up 33.9% in the past year to a 7.1 month supply.
Condo sales -3.2% and are down 16% in the past year. Inventories of condos are up 42.9% in the past year to an 8.6 month supply.
This months median sales price fell -2.2%, a back to back decline for the 1st time in 16 years. In the past year, SFR median sales price fell -2.5%, the largest decline on record.
Market Observations: Aside from GM & Boeing weighing on the DJIA, it was a broadbased move to the upside today as 1381 was hit on the SP500.
Note, all time highs, yesterday DJIA 12204.8, today NYSE 8791.52. 5.5 year highs, today, SP500 1283.05, OEX 642.98, TMWX 13857.92.
We look towards 1405 SP500 as the next potential inflection point. Perhaps the NDX will line up to 1795 in the crosshairs as well. These events should coincide with the Nov 7th midterm elections.
If the Democrats seize control of the House & Senate in the Nov 7th elections, a lame duck Republican President will vetoe all bills and be unable to effect legislation for his remaining 2 years in office.
In addition, Democratic control will be construed as unfriendly towards big business, resulting in profit taking in the equities markets over the near term. Watch the results closely and see how the markets react on Nov 8th.
Inside the number: Sales have fallen for 6 months and are down 14.2% in the last year. Inventories fell -2.4% to 3.75M.
SFR sales -13.8% in the past year, the biggest decline in 11 years. Inventories of SFR's are up 33.9% in the past year to a 7.1 month supply.
Condo sales -3.2% and are down 16% in the past year. Inventories of condos are up 42.9% in the past year to an 8.6 month supply.
This months median sales price fell -2.2%, a back to back decline for the 1st time in 16 years. In the past year, SFR median sales price fell -2.5%, the largest decline on record.
Market Observations: Aside from GM & Boeing weighing on the DJIA, it was a broadbased move to the upside today as 1381 was hit on the SP500.
Note, all time highs, yesterday DJIA 12204.8, today NYSE 8791.52. 5.5 year highs, today, SP500 1283.05, OEX 642.98, TMWX 13857.92.
We look towards 1405 SP500 as the next potential inflection point. Perhaps the NDX will line up to 1795 in the crosshairs as well. These events should coincide with the Nov 7th midterm elections.
If the Democrats seize control of the House & Senate in the Nov 7th elections, a lame duck Republican President will vetoe all bills and be unable to effect legislation for his remaining 2 years in office.
In addition, Democratic control will be construed as unfriendly towards big business, resulting in profit taking in the equities markets over the near term. Watch the results closely and see how the markets react on Nov 8th.
Comments