Stock Market Update

The S&P 500 futures are down 59 points and are trading 1.0% below fair value, the Nasdaq 100 futures are down 316 points and are trading 1.5% below fair value, and the Dow Jones Industrial Average futures are down 135 points and are trading 0.3% below fair value.

Total housing starts in June increased 3.0% month-over-month from a depressed base to a seasonally adjusted annual rate of 1.353 million (Briefing.com consensus 1.310 million); however, single-unit starts were down 2.2%. Total building permits jumped 3.4% month-over-month to a seasonally adjusted annual rate of 1.446 million (Briefing.com consensus 1.391 million); however, permits for single units -- a leading indicator -- were down 2.3%.

The key takeaway from the report is that, while it might have been better than expected relative to consensus estimates, it was not a strong report nor a particularly encouraging report for an inventory-constrained housing market in need of lower-priced, single-family homes.

Total industrial production increased 0.6% month-over-month in June (Briefing.com consensus 0.3%) after a 0.7% increase in May (revised from 0.9%). The capacity utilization rate jumped to 78.8% in June (Briefing.com consensus 78.6%) from a 78.3% (revised from 78.2%) in May.