Initially, equites opened lower but found the resolve to rally into positive territory on the back of financials.  The KBW Bank Index is trading higher by 0.48%.  With earnings winding down, 90% of S&P 500 companies have reported, the results are impressive, and the resolve shows the markets are happy.  A 24% increase in earnings coupled with a 9% jump in revenues are lending a bid to the markets. 

• The Dow is down 0.17%
• The Nasdaq is up 0.10%
• The S&P 500 is higher by 0.02%
• The Russell 2000 is lower by 0.20%

Crude Inventories

Crude oil has been trading in a range between $72.5 and $67.  Today, the US Energy Information Administration (EIA) released its weekly inventory report.  Domestic crude stockpile decreased 1.4 million barrels vs market expectations of a 2.8 million-barrel draw. 

Crude was trading @ $68 prior to the report at 10:30am.  Currently, crude is trading below the bottom of its recent range @ $66.42, down $2.76 (-4.00%). 

The Mortgage Bankers Association’s (MBA) latest weekly Mortgage Applications Survey showed mortgage applications decreased 3% from the prior week, to its lowest level since January 2016.  Year over year mortgage applications are 17% lower.  This is the third week in a row to show a decline.  Rising prices are stifling demand for homes, especially for new homebuyers.  New homebuyer purchase volume was down 2% from the previous week as well as from a year ago.  According to CoreLogic, home prices rose 6.8% in June from year ago levels.  

• The seasonally adjusted Purchase index decreased 2%
• The Refinance Index decreased 5% to its lowest level since December 2000