Foreclosures Skyrocket
rom Tom Harvey – author and Cyrus Uible – technical guru.
Stocks moved up today, ending the week about even.
Bonds, on the other hand, continued its move upward in interest rates – and this is what drove most markets today. Inflation is the word. Inflation drives interest rates up.
Oil was talked down slightly, but ended around $135/barrel, so it’s still very high.
Gold moved up $1, and continues to be a reasonable buy.
In the news today….
Inflation, as measured by the CPI, came in at 0.6% for May, and 4.2% year over year. This was much higher than expected, and drove the inflation fear throughout the markets. Just for your education, energy is rising at 16.7 annualized, and food is rising at 6.3% annualized. Both of these 2 components should continue increasing in coming months.
Foreclosure notices were up 7% in May over April, and totaled 261,255 notices. This is the highest number ever. As this is an increasing number, the number of foreclosures continued to accelerate, and this is the number to watch in the future for any turnaround in the housing market, as foreclosures are driving prices right now in most (but, not all) markets.
Here are today’s numbers:
Dow Jones 30 Industrial – 12,307 (up 166 points)
10 Year Treasury Bond – 4.26% (up 0.06%)
Euro – $1.5393
Gold – $873 (up $1)
Oil – $134.86 (down $1.88)
Gasoline – $3.46 (down $0.06)