Interesting bifurcation with tech taking it on the chin as the Facebook (FB) saga takes a new turn with Mark Zuckerberg agreeing to come to Capitol Hill.  Utilities are by far the best performing sector underscoring general anxiety.  

On the economic front, the Case-Shiller U.S. National Home Price Index for January 2018 was 196.31, a 6.18% rise compared to the same period a year ago.  This was down slightly from the previous months gain of 6.3%.  The 20-city composite rose 0.3% month over month and 6.4% from the prior year to 205.1.The markets have been drifting in and out of positive territory.  The Dow is up about .62% to 24,368 helped in part by General Electric (GE), which is up about 5.6% ($13.62) and coming off a 9-year low, as rumors are circulating that there may be a potential suitor taking a large stake in the company.  The Nasdaq however remains in the red.  Technology is giving some of yesterday’s gains back as names like FB, GOOG, NFLX, and TWTR are all down from 1-2%.  

According to David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones “Since the market bottom in December 2012, the S&P CoreLogic Case-Shiller National Home Price index has climbed at a 4.7% real – inflation adjusted – annual rate.” He added, “That is twice the rate of economic growth as measured by the GDP. While price gains vary from city to city, there are few, if any, really weak spots.”

Seattle had the biggest gain, 12.9%, followed by Las Vegas, 11.1%. Washington and Chicago tied for the least price increase at 2.4% year over year.  The current months-supply, the time it would take to sell current inventory at the current sales pace, at 3.4 months, indicates supply is still constrained.   The average current-month supply since 2000 is 6 months. 

Consumer Confidence came in a little below consensus after pulling back from an 18-year high in February of 130.8, but it is still extremely optimistic on a historic basis. We pay close attention to this release as consumers make up approximately 70 percent of the U.S. GDP.

• Headline Index 127.7 from 130.0
• Present Conditions 159.9 from 161.2
• Expectations 106.2 from 109.2