>>U.S. stocks sold off yesterday after the Federal Reserve cut interest rates by just 25 basis points, and the selloff gathered steam during Chairman Jerome Powell’s subsequent press conference, where he gave the impression that Wednesday’s cut was a “mid-cycle adjustment to policy” rather than the first in a series of actions to lower interest rates.
The Federal Reserve is worried about the economy, but American consumers aren’t. They’re very confident, in fact. The consumer confidence index jumped to 135 in July from 124 in June. The index now sits just a touch below an 18-year high of 137.9 set last October.
The nation’s businesses created 156,000 private-sector jobs in July, according to payroll processor ADP, showing that companies are still willing to hire despite stiffer headwinds for the economy such as the ongoing trade spat with China.
Pending home sales rose in June, with activity particularly brisk in the western part of the U.S. The National Association of Realtors said pending home sales climbed 2.8%, with gains in each of the four major regions, including a 5.4% jump in the West. Compared to 12 months ago, sales rose 1.6%, the first year-over-year gain in 17 months. The Case-Shiller home-price report also released showed moderating gains in prices in key Western cities, and in Seattle’s case, an outright year-over-year decline.
With Northwest Quadrant Wealth Management, I’m Tyler Simones.