New US residence gross sales surged in August. Signed contracts for brand new single-family houses jumped to a seasonally adjusted annual fee of 800,000, a 21% from the earlier month and 15% above the year-ago degree. Nancy Vanden Houten, a lead US economist at Oxford Economics, mentioned the rise “probably overstates any enchancment in housing exercise. New residence gross sales are liable to heavy revisions. A flat-ish development in gross sales, just like what has been evident all 12 months, appears extra probably.”
The White Home Workplace of Administration and Funds tells federal companies to organize layoff plans if a authorities shutdown begins subsequent week. OMB mentioned to determine packages, initiatives and actions the place discretionary funding will lapse on Oct. 1 with no different funding sources.
Federal Reserve Chair Powell mentioned “Fairness costs are pretty extremely valued,” on Tuesday. He added: “it’s not a time of elevated monetary stability threat.”
Lithium Americas shares rose sharply because the Trump administration mentioned it’s looking for fairness stake within the Canada-based mining firm. The announcement follows the Division of Protection’s buy of a 15% fairness stake in uncommon earth miner MP Supplies in July.
Nvidia, a frontrunner in AI chip, mentioned it might make investments $5 billion in Intel, a former chief and now struggling agency within the semiconductor manufacturing trade. “This can be step one of an acquisition or breakup of the corporate (Intel) amongst U.S. chip makers although it’s solely potential the corporate will stay a shadow of its former self however will survive,” mentioned Nancy Tengler, CEO of Laffer Tengler Investments, which owns shares in Nvidia.
Rising grocery costs are a “main supply of stress for roughly half of Individuals,” stories The Hill: “Grocery costs rose 0.6 p.c from July to August, the steepest one-month acquire in roughly three years, in accordance with the Shopper Worth Index. They’re now 2.7 p.c increased than a 12 months in the past and up practically 30 p.c from earlier than the pandemic.
US inventory market valuation strategy report excessive, based mostly on the Shiller Worth-Earnings Ratio: “With the S&P pricing in 23-24 occasions anticipated earnings and expectations priced into that a number of of about 15% annualized earnings development over the following 5 years, that sounds fairly wealthy to me,” mentioned Ron Albahary, chief funding officer at LNW in Philadelphia.
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