U.S. home building fell unexpectedly by 4.8% in July. Single-family home building slipped 0.5%. Despite strong demand for housing, groundbreaking on single-family homes has slowed since posting 9-1/2-year highs in February. Homebuilders say they cannot find skilled labor, especially framers, and that buildable lots remain in short supply. Multi-family housing fell 15.3%. (CNBC)

Do transports matter? The weak action lately in transports has many wondering if this is a potential warning sign for the broader markets. The big worry stems from August 1, when the Dow closed at a new 52-week high and transports closed at a new 52-week low relative to the Dow. This rare combination also took place ahead of the 1973-1974 bear market, the 1987 crash, and the tech bubble in 2000. Keep your eyes peeled. (LPL Research)

Business inventories rose 0.5% their biggest increase in seven months as retailers accumulated stock. Car inventories increased 0.7%. At the current sales pace, it would take 1.38 months for businesses to clear shelves. (Reuters)

Wal-Mart beat the street as online purchases grew 60%. Same-store sales for U.S. stores climbed 1.7%. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.