Equities resumed their march higher last week. The shorter week, due to the July 4th holiday, should mean lower trading volumes this week.
The economic data was positive last week. Housing data was better in the month of May. Building Permits, Mortgage Applications, New Home Sales, and Existing Home Sales were all higher for the month. Pending Home Sales did disappoint, but have still not dropped down to the low level reached in November of last year. The University of Michigan's Consumer Sentiment for June came out at 64.4, which was higher than forecast and much higher than last month's reading of 59.2.
Personal Income came in higher for the April reading, while Personal Spending was lower than expected, but still higher than March.
As Summer vacations begin, we'll see if the June reading for Personal Spending improves. However, with a healthy consumer and a return of more than 5% for equities in June, the prospect of a solid 2nd half for 2023 remains a strong possibility. Expect a little pullback in equities as quarter-end will force many pension funds to rebalance back into fixed income. Equities should resume a positive trend as rebalancing is completed.
Disclosures
The information contained herein is for informational purposes only and is developed from sources believed to be providing accurate information. The opinions expressed are those of the author, are for general information, and should not be considered a solicitation for the purchase or sale of any security. The decision to review or consider the purchase or sell of any security should not be undertaken without consideration of your personal financial information, investment objectives and risk tolerance with your financial professional.
Forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
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