U.S. stocks and exchange traded funds (ETFs) started out strong on news of additional financial aid for Greece; however, unfavorable U.S. economic data restrained additional gains.
The SPDR S&P 500 ETF (NYSEArca: SPY) is down 1.59% over the past month and is currently up 0.62%.
The S&P/Case-Shiller composite index of 20 major U.S. cities dropped 0.8% in March on a non-seasonally adjusted basis, with prices in 18 of 20 cities dropping on a monthly basis, reports Greg Robb for MarketWatch. Prices declined 3.6% year-over-year in March, and the index has reached a double-dip downturn after retreating past April 2009 lows. [Greece Bailout Catapults Stock ETFs Higher.]
The housing market is currently suffering from a glut in distressed properties, a “shadow inventory” of houses, which has made sellers loathe to dump their properties, and a reduced number of consumers who are qualified for mortgages.
Lou Crandall, chief economist at Wrightson ICAP, opines that home prices will experience a negative 4% year-over-year nadir during the summer season.
The Institute for Supply Management-Chicago business barometer declined from 67.6 in April to 56.6 in May, reports Leah Schnurr for Reuters. New orders dropped to 53.5 from 66.3.
“While weakness in manufacturing may simply reflect auto parts shortages,” says Chris Low, chief economist at FTN Financial, “this is the fifth regional manufacturing index to fall sharply in May,” which he thinks “reinforces the general sense the economy is losing steam.”
The Conference Board announced that its consumer-confidence index dropped to 66.8 in May, a six month low, from a revised 66 in April, writes Jeffry Bartash for MarketWatch.
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Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.