U.S. Indices sold off on Tuesday, with weakness led by the mega-cap tech stocks, seeing the NASDAQ underperform, with the Financial Times citing the tech weakness to a MIT paper questioning returns from new technology, which has punctured Wall Street enthusiasm. Within the paper, it notes “95 per cent of organisations are getting zero return” from their investments in gen AI”. However, breadth was positive with the equal weight S&P seeing gains, with upside led by Real Estate, Consumer Staples and Utilities – all defensive sectors. Tech and Communication were the clear laggards weighing on the market, although small caps still were hit with the Russell closing red, too. In the risk-off trade, T-Notes trended higher throughout the session, while the data highlights saw a strong beat in Housing Starts but a miss in Building Permits. Meanwhile, in Canada, inflation was softer than expected, seeing traders boost rate cut bets for the Bank of Canada. The focus today remained on Russia/Ukraine progress, although little new information was found, but reports suggest the bilateral meeting between Putin and Zelensky will take place in Budapest, Hungary. Crude prices sold off in a gradual move lower ahead of inventory data, while Gold prices pared early gains as the Dollar moved slowly higher, but gains were capped by strength in the Japanese Yen. Attention turns to Jackson Hole this week, particularly Fed Chair Powell’s speech on Friday, but before that there is the latest FOMC Minutes on Wednesday. US Housing Starts rose 5.2% to 1.428 million from the upwardly revised 1.358 million, above the 1.29 million forecast and the top end of analyst expectations, 1.351 million. Building Permits, which are more forward-looking, fell 2.8% to 1.354 million from 1.393 million, below the 1.386 million forecast. According to the data, Oxford Economics suggest the July pace of permits suggests the pace of starts will not be sustained, but the increase in Housing Starts lends upside risk to their forecast for housing starts and residential investment in Q3. Although housing starts can be volatile, single-family housing starts in July were at a rate of 939,000; 2.8% above the revised June figure of 913,000. The July rate for units in buildings with five units or more was 470,000. OxEco notes that the multistarts can be volatile but have clearly been trending higher in the last few months. Elsewhere, both Oil and Gold closed lower by 1.66% and 0.5% respectively.
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For anyone following my Platinum Service it made 192 points yesterday and is now ahead by 2524 points for August after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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