No Suprise From FED
All markets moved sideways again – just like yesterday – except the dollar which lost value after the FED announcement today. Oil and gasoline moved a little downwards based on oil storage measures.
In the news today….
The FED announced today that it would NOT change the Fed Funds Rate (just as predicted). They used their loud voice to WARN that they will be fighting inflation “sometime in the future” by increasing interest rates (just as predicted). This was really a ho-hum day at the FED, and quite boring, given the excitement of past announcements.
New House Sales fell 2.5% in May over the previous month. The median price of a new house was $231,000, down 5.7% from last year. The Investory of Unsold New Homes was UP to 10.9 months worth of inventory. UGH!!!!! We really need to get the inventory to start dropping to see an end to the pain. However, the handwriting is on the wall. Prices will continue down for new homes even as the number of sales declines – just like they are for used homes – and there is no sign of a bottom in sight.
Here are today’s numbers:
Dow Jones 30 Industrial - 11,811 (up 4 points)
10 Year Treasury Bond - 4.12% (up 0.01%)
Euro - $1.5677
Gold - $882 (down $9)
Oil - $132.70 (down $2.45)
Gasoline - $3.39 (down $0.07)
