{"id":63475,"date":"2022-08-16T09:00:33","date_gmt":"2022-08-16T13:00:33","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63475"},"modified":"2022-08-16T09:00:43","modified_gmt":"2022-08-16T13:00:43","slug":"coffee-with-greta-homebuilding-plunges-in-july","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/08\/16\/coffee-with-greta-homebuilding-plunges-in-july\/","title":{"rendered":"Coffee With Greta: Homebuilding Plunges in July"},"content":{"rendered":"

DJIA Futures: <\/b>-45 (-0.1%)<\/span><\/p>\n

SPX Futures: <\/b>-8 (-0.2%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-30 (-0.2%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are slipping as new data shows the housing market slowing further and traders digest key retail earnings.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Housing Starts, Building Permits Drop in July<\/span><\/h2>\n

New home construction fell more than expected in July as higher mortgage rates put pressure on builders already struggling with high material costs.<\/span><\/p>\n

The Census Bureau reported housing starts tumbled 9.6% last month to a seasonally adjusted annual rate of 1.45 million units.\u00a0<\/span><\/p>\n

That\u2019s the lowest rate of building since September 2020 and lower than expectations for an SAAR of 1.52 million units.\u00a0<\/span><\/p>\n

Single-family starts plunged 10.1% while multi-family starts dropped 10%<\/span><\/p>\n

The slowdown will continue as building permits also fell in July.\u00a0<\/span><\/p>\n

The number of new permits issued fell 1.3% to a seasonally adjusted annual rate of 1.67 million units.\u00a0<\/span><\/p>\n

That was better than economists\u2019 expectations for permits to fall to an SAAR of 1.63 million units.\u00a0<\/span><\/p>\n

The drop in permits was focused in single-family homes.\u00a0<\/span><\/p>\n

Single-family permits fell 4.3% monthly while multi-family permits rose 2.5%.<\/span><\/p>\n

Cancelled Home-Purchase Agreements Surge<\/span><\/h2>\n

A record percentage of home-purchase agreements were cancelled in July as the housing market slows rapidly.\u00a0<\/span><\/p>\n

Redfin reported 63,000 contracts were cancelled last month.<\/span><\/p>\n

That represented 16.1% of homes that went under contract during July, the highest percentage on record excluding March and April of 2020.<\/span><\/p>\n

Redfin said,\u00a0 “The housing market is slowing as higher mortgage rates sideline many prospective homebuyers. With competition declining, the house hunters who are still in the market are enjoying newfound bargaining power–a stark contrast from last year, when they often had to pull out every stop in order to win.\u201d<\/span><\/p>\n

Walmart Tops Q2 Expectations<\/span><\/h2>\n

Walmart <\/b>(WMT) shares are up 4.2% ahead of the open after beating Q2 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

The retailer reported adjusted earnings of $1.77 per share on $152.86 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for adjusted EPS of $1.62 on $150.81 billion in revenue.\u00a0<\/span><\/p>\n

Same-store sales in the U.S. grew 6.5% year over year, better than estimates of 5.9% growth.\u00a0<\/span><\/p>\n

Online sales rose 12% compared to a year ago and 18%.<\/span><\/p>\n

Walmart\u2019s inventory levels in the U.S. surged 25.6% year over year as the cost of goods jumped.\u00a0<\/span><\/p>\n

The company reiterated its profit warning from last month.\u00a0<\/span><\/p>\n

Walmart maintained its forecast for 3% same-store sales growth in the U.S. for the rest of this year and anticipates adjusted EPS will decline between 9% and 11% for the full year.<\/span><\/p>\n

Home Depot Slips Despite Q2 Earnings Beat<\/span><\/h2>\n

Home Depot <\/b>(HD) shares are slipping 1% in premarket trade despite beating Q2 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

The home improvement retailer reported adjusted earnings of $5.05 per share on $43.79 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for adjusted EPS of $4.94 on $43.36 billion in revenue.\u00a0<\/span><\/p>\n

Same-store sales rose 5.8% year over year vs expectations for 4.9% growth.\u00a0<\/span><\/p>\n

Home Depot reiterated its guidance for full-year sales to grow about 3% compared to a year ago.\u00a0<\/span><\/p>\n

The CEO and President said, \u201cOur team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment.\u201d\u00a0<\/span><\/p>\n

Oil Prices Turn Higher<\/span><\/h2>\n

Oil prices have reversed earlier losses and turned higher in morning trade.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 0.6% to $90 bbl while Brent crude futures are up 0.3% to over $95 bbl.<\/span><\/p>\n

The market is continuing to monitor talks to revive the Iran nuclear deal.\u00a0<\/span><\/p>\n

If an agreement is reached, that deal is expected to allow Iran to boost its oil production.<\/span><\/p>\n

The American Petroleum Institute will report weekly crude and gasoline inventory levels later today.\u00a0<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • The NAHB\u2019s sentiment index tumbled into negative territory on Monday. The survey dropped 6 points in August to 49, with any reading below 50 considered negative. That was the 8th straight monthly decline and lower than economists\u2019 expectations for 54. NAHB\u2019s Chief Economist said the U.S. has now fallen into a \u201chousing recession\u201d due to tighter monetary policy and persistently high construction costs.<\/span><\/li>\n
  • Walt Disney <\/b>(DIS) shares rose 2.2% on Monday after activist investor Dan Loeb bought a new stake in the company. Loeb disclosed that \u201csignificant stake\u201d in a letter to Disney\u2019s CEO on Monday. In that letter, he asked the company to consider several initiatives including a spin-off of ESPN and fully acquiring Hulu to integrate it into the Disney+ platform.<\/span><\/li>\n<\/ul>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: -45 (-0.1%) SPX Futures: -8 (-0.2%) NASDAQ Futures: -30 (-0.2%) Good morning friends! Futures are slipping as new data shows the housing market slowing further and traders digest key retail earnings. Let\u2019s get right to it! Housing Starts, Building Permits Drop in July New home construction fell more than expected in July as higher mortgage rates put pressure on builders already struggling with high material costs. The Census Bureau reported housing starts tumbled 9.6% last month to a seasonally adjusted annual rate of 1.45 million units.\u00a0 That\u2019s the lowest rate of building since September 2020 and lower than expectations for an SAAR of 1.52 million units.\u00a0 Single-family starts plunged 10.1% while multi-family starts dropped 10% The slowdown will continue as building permits also fell in July.\u00a0 The number of new permits issued fell 1.3% to a seasonally adjusted annual rate of 1.67 million units.\u00a0 That was better than economists\u2019 expectations for permits to fall to an SAAR of 1.63 million units.\u00a0 The drop in permits was focused in single-family homes.\u00a0 Single-family permits fell 4.3% monthly while multi-family permits rose 2.5%. Cancelled Home-Purchase Agreements Surge A record percentage of home-purchase agreements were cancelled in July as the housing market slows rapidly.\u00a0 Redfin reported 63,000 contracts were cancelled last month. That represented 16.1% of homes that went under contract during July, the highest percentage on record excluding March and April of 2020. Redfin said,\u00a0 “The housing market is slowing as higher mortgage rates sideline many prospective homebuyers. With competition declining, the house hunters who are still in the market are enjoying newfound bargaining power–a stark contrast from last year, when they often had to pull out every stop in order to win.\u201d Walmart Tops Q2 Expectations Walmart (WMT) shares are up 4.2% ahead of the open after beating Q2 expectations on the top and bottom line.\u00a0 The retailer reported adjusted earnings of $1.77 per share on $152.86 billion in revenue.\u00a0 That was better than analysts\u2019 expectations for adjusted EPS of $1.62 on $150.81 billion in revenue.\u00a0 Same-store sales in the U.S. grew 6.5% year over year, better than estimates of 5.9% growth.\u00a0 Online sales rose 12% compared to a year ago and 18%. Walmart\u2019s inventory levels in the U.S. surged 25.6% year over year as the cost of goods jumped.\u00a0 The company reiterated its profit warning from last month.\u00a0 Walmart maintained its forecast for 3% same-store sales growth in the U.S. for the rest of this year and anticipates adjusted EPS will decline between 9% and 11% for the full year. Home Depot Slips Despite Q2 Earnings Beat Home Depot (HD) shares are slipping 1% in premarket trade despite beating Q2 expectations on the top and bottom line.\u00a0 The home improvement retailer reported adjusted earnings of $5.05 per share on $43.79 billion in revenue.\u00a0 That was better than analysts\u2019 expectations for adjusted EPS of $4.94 on $43.36 billion in revenue.\u00a0 Same-store sales rose 5.8% year over year vs expectations for 4.9% growth.\u00a0 Home Depot reiterated its guidance for full-year sales to grow about 3% compared to a year ago.\u00a0 The CEO and President said, \u201cOur team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment.\u201d\u00a0 Oil Prices Turn Higher Oil prices have reversed earlier losses and turned higher in morning trade.\u00a0 West Texas Intermediate crude futures are up 0.6% to $90 bbl while Brent crude futures are up 0.3% to over $95 bbl. The market is continuing to monitor talks to revive the Iran nuclear deal.\u00a0 If an agreement is reached, that deal is expected to allow Iran to boost its oil production. The American Petroleum Institute will report weekly crude and gasoline inventory levels later today.\u00a0 In Case You Missed It The NAHB\u2019s sentiment index tumbled into negative territory on Monday. The survey dropped 6 points in August to 49, with any reading below 50 considered negative. That was the 8th straight monthly decline and lower than economists\u2019 expectations for 54. NAHB\u2019s Chief Economist said the U.S. has now fallen into a \u201chousing recession\u201d due to tighter monetary policy and persistently high construction costs. Walt Disney (DIS) shares rose 2.2% on Monday after activist investor Dan Loeb bought a new stake in the company. Loeb disclosed that \u201csignificant stake\u201d in a letter to Disney\u2019s CEO on Monday. In that letter, he asked the company to consider several initiatives including a spin-off of ESPN and fully acquiring Hulu to integrate it into the Disney+ platform.  <\/p>\n","protected":false},"author":41,"featured_media":63480,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-63475","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=63475"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63475\/revisions"}],"predecessor-version":[{"id":63482,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63475\/revisions\/63482"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/63480"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=63475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=63475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=63475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}