The markets staged a comeback but are in the red across the board. FAANG is still under pressure, yet way off the lows. Netflix (NFLX) the only one bucking the trend and is up on the day.  Next week is a big earnings week for FAANG, and results may deeply influence the overall markets, especially tech.

• Facebook (FB) 7-29
• Amazon (AMZN) 7-30
• Apple (AAPL) 7-30
• Google (Alphabet, GOOG/L) 7-30

The only S&P 500 sector in the green today is Consumer Discretionary.

Breadth is decidedly negative and declining volume outpaces advancing, yet, 52-week highs outweigh the lows.

New Home Sales

We have talked a lot about household formation and more people headed for the burbs from the city. Covid has amplified the desire to leave the skyscrapers for picket fences.  June’s new home sales was a testament to that, especially in the Northeast. New home sales rose a whopping 13.8% in June from May to 776,000 units.  This was the highest pace since July 2007. Year over year, new home sales have surged 13.7%.

Tight supply, low interest rates added to the demand.

• Median sales price +5.6% year over year to $329,200
• Average sales price increased 6.3% to $384,700
• Supply is down to 4.7 months versus 5.5 months in May
• Sixty-eight percent of new homes sold were $399,999 or below, down from 73% in May and 72% in the prior year period

New home sales by region:

• Northeast +89.7%
• Midwest +10.5%
• South +7.2%
• West +18.0%

Have a great weekend.  Be safe and stay well.