More disappointing data pushed stocks lower at the start of trading, but the market moderated, and continued to be in wait-and-see mode.  Then, St Louis Fed President James Bullard said a 50-basis point cut in July would be “overdone.”  The markets are now taking another leg lower. 

The news probably puts additional pressure on the Federal Reserve to be proactive.  Of course, there are so many things putting pressure on Jay Powell & Company including:

• President Trump
• Economic Uncertainty
• Global Central Banks
• Excessive Rate Hikes

Everyone will be listening attentively to Federal Reserve Chairman Jay Powell in New York today. After it was revealed Neel Kashkari advocated for a 50-bps rate cut, more observers are jumping on that bandwagon. 

Conference Board Consumer Confidence

The initial read coming in at 121.5, significantly below consensus of 131, as consumers worry more about the China trade skirmish and potentially higher tariffs.   The number is still near historic highs and there were no real red flags.  Still, it’s another number that came in less than anticipated.

• Present conditions 162.6 from 170.17
• Expectations 94.1 from 105.0

New Home Sales

New home sales declined 7.8% to an annualized rate of 626,000 far below the consensus number of 683,000.  It was the second consecutive decline from the second highest level in more than a decade.

New Home Sales

Median sales prices for new homes continues to move lower since peaking at $343,400 in November 2017.  Median sales price was $308,000.

In May:

• -2.7% year to year
• -8.1% month to month