U.S. stock futures were slightly higher as investors continue to evaluate the second-quarter earnings results. Today after the closing bell Netflix (NFLX), International Business Machines (IBM), and eBay (EBAY) will all report earnings. So far, earnings from the largest U.S. banks have raised concerns that lower interest rates could hurt banking profits in the third quarter.
The S&P moved lower for the second day in a row on Tuesday and closed just above possible support at 3002.33. The selling came with higher volume than the previous day, which could show selling might be intensifying. The RSI index moved out of the overbought zone giving another indication sellers may be taking over. We will remain short term cautious for now.
Housing starts fell in June down to 1.253M compared to 1.269M for May, and new permits also were lower at 1.220M compared to prior of 1.294M. These two economic reports suggest the housing market continues to struggle despite lower mortgage rates.
We are currently long term bullish and short cautious.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, Windsor Wealth
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
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A housing start is registered at the start of construction of a new building intended primarily as a residential building. The start of construction is defined as the beginning of excavation of the foundation for the building.