Housing starts fall, new permits rise and jobless claims move up

Housing starts fall, new permits rise and jobless claims move up but they’re not as bad as they look. All this mixed economic data seems to have put investor sentiment in limbo with regard to further quantitative easing by the Fed and investors look content to  sit on the sidelines and wait till a clearer picture of central bank action starts to form…probably until Jackson Hole. Housing starts fell 1.1% in July, a sharp change in direction from June However, new construction permits were up 6.8%, the highest since the latter half of 2008! Jobless claims for the week ending Aug.11 rose by just 2,000 claims but if you look deeper the four-week moving average actually dropped by 5,500. European stocks are nearing 5-month highs as the possibility of a Greek exit doesn’t seem to be worrying the markets. Chinese Premier Wen Jiaboa indicated the door was open for more monetary easing but stopped short of saying that it was certain to be used. All of this has dampened hopes of any monetary action in the near term and so the remainder of the week is shaping up to be a slow grind. Have a great day!