Midday Report: US Stocks Fall After Home Construction Starts In July, Weekly Mortgage Applications Fall



US stocks fell on Wednesday after early attempts to recover losses on Tuesday ended and ahead of the release of the July Federal Reserve minutes, which will be analyzed for clues about the timing of a possible cut in Fed asset purchases.

The Dow Jones Industrial Average fell 0.1% to 35,303.19, while the S&P 500 also fell 0.1% and the Nasdaq fell less than 0.1%.

Real estate, consumer goods and utilities stocks were weak, while consumer goods were the leading sector shortly after midday.

The yield on 10-year US Treasuries rose 2 basis points to 1.28%.

US housing starts fell 7% to 1.534 million annually on a seasonally adjusted basis in July, below market expectations of 1.6 million units, according to government figures, according to Econoday.

Mortgage applications fell last week as higher interest rates discouraged refinancing and potential home buyers faced rising prices. According to a weekly poll by the Mortgage Bankers Association, the seasonally adjusted index of purchased mortgages fell 1%, while demand for refinancing fell 5%.

In corporate news, Lowe’s (LOW) reported adjusted earnings and sales for the second quarter of the fiscal year that exceeded market expectations. Stocks jumped more than 10% and topped the S&P 500.

Comcast (CMCSA) added more than 6% after announcing plans to launch a new streaming video-on-demand subscription in partnership with ViacomCBS (VIAC). The companies said SkyShowtime will be available in over 20 European countries.

U.S. Senators Richard Blumenthal, Connecticut, and Edward Markey, Massachusetts have called on the U.S. Federal Trade Commission to investigate Tesla (TSLA) over the company’s claims that its vehicles are fully autonomous, Reuters reports, citing a sent letter. … Lina Khan, Chairman of the Federal Trade Commission. Tesla shares are up 4%.

Salesforce.com (CRM) added 3.2% after Goldman Sachs, JMP Securities and Wolfe Research raised their software share price targets to $ 335 per share.

West Texas Intermediate crude fell $ 0.82 to $ 65.77 a barrel, shedding modest gains early in the session.

US crude oil inventories fell 3.2 million barrels in the week ending Aug. 13, against expectations for a 1.5 million barrels drop in a Bloomberg survey and after a 400,000 barrel decline in the previous week.

In the metals markets, gold fell less than 0.1% to $ 1,786.60 an ounce, silver fell 0.8% to $ 23.46 an ounce, and copper fell 2.2% to $ 4.11 an ounce. lb.


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