Earnings continue to drive this market higher.  Today, it’s the transportation stocks that are in the driver seat; the Dow Jones Transportation Index is higher by 2.33%.    

 

• The Dow Jones U.S. Railroads index, DJUSRR, is higher by 3.75% following CSX earnings  

• Truckers are higher following Marten Transport (MRTN) earnings  

• Airlines are following earnings from United (UAL) 

• Norwegian Cruise Line (NCLH) is higher by 6% after saying it expects to raise full-year EPS guidance when it reports on August 9th    

 

 

For the week ended July 13, mortgage applications declined 2.5% seasonally adjusted.  This reversed the previous week’s 2.5% gain.  The Purchase Index declined by 5%, while the Refinance Index gained 2%. Total volume is 12% below the same week a year ago. 

FHA purchase volume increased, indicating first time home buyers are stepping up despite tight supplies and elevated prices.  FHA loans are the preferred mortgage for first time home buyers who may have lower credit scores.         

 

On a seasonally adjusted basis, privately-owned housing starts in June came in at a 1.173 million annual rate, down 12.3% from May’s revised estimate of 1.337 (revised from 1.350 million) million annual units and 4.2% below June 2017.  Multi-unit (5 units or more) were lower by 20%, while single-family starts were 9.1% below May’s pace.  This was a nine-month low and conflicts with the NAHB builder confidence index, released yesterday, that showed high builder confidence.  

Building permits fared better than starts, coming in at a seasonally adjusted annual rate of 1.273 million units.  This was 2.2% below May’s rate and 3% below year ago levels.  Single-family permits increased by 0.8% above May’s rate.               

 

The Energy Information Administration (EIA) reported a build in crude oil inventories when the market had been expecting a draw.  Crude oil inventories increased 5.8 million barrels when expectations were for a draw of 3.6 million barrels.

EIA Petroleum Inventories	Actual	Expected
Crude Oil	5.8 million	-3.6 million
Gasoline	-3.2 million	-0.1 million
Distillates	-0.4 million	0.9 million

Crude initially fell on the news, but quickly found its footing and rallied off a declining U.S. dollar (USD).  Currently, crude is trading unchanged at $68.08.

 

 

Major indices are trading mixed with the Dow higher by 0.33% while the Nasdaq is lower by 0.08%.  Breadth is evenly mixed.  

 

• NYSE advances are 1,545 to declines of 1,363; new 52-week highs are 64 to new lows of 33

• Nasdaq advances are 1,400 to declines of 1,456; new highs are 87 to new lows of 42