Stocks, oil and gold are trading in lockstep today. The major indices are continuing their upward trajectory and once again making new all-time highs.  Oil is moving higher by 2.5% with WTI at $45.60 per barrel as production freeze chatter continues. Gold, at $1342, is marching higher as chances for a Fed rate hike this year continue to weaken. Let’s see if Fed minutes due out mid-week shed any new light.

This morning, we got the latest read on homebuilder sentiment for newly constructed single-family homes. The Housing Market Index (HMI) for builder confidence was up 2% in August to 60, from the July downwardly revised 58. Any number over 50 indicates that more builders view conditions as good rather than poor.  Current sales conditions rose two points to 65, while the sales expectations in the next six months increased one point to 67, and buyer traffic fell one point to 44. 

According to Robert Deitz, NAHB Chief Economist, “Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth in July.” He went on to say “Historically low mortgage rates, increased household formations and a firming labor market will help keep housing on an upward path during the rest of the year.”  Homebuilders are faring well today with Toll Brothers up 3%, and the XHB (homebuilder ETF) up 1%.  

Industrials, Materials, Energy, Technology and Financials are leading strong while Telecom, Utilities and Consumer Staples lag. Volume is light again and advancers outpace decliners (NYSE 2076/849 and NASDAQ 2039/795).