The KUIK Market Update for Tuesday, December 15:
Markets are up.
Index Direction Change Units Time Change
Dow Up 188 points 17,557 8:08 AM
S&P500 Up 1.1% percent 2,045 22.88
Nasdaq Composite Up 1.1% percent 5,007 54.56
30 Year Treasury Up 5 Basis Points 3.01 Annual Yield
Manufacturing conditions in the New York area contracted less in December, indicating factory conditions are weak but not getting worse. The Empire State general business conditions index moved up to a reading of negative 4.6, from November’s negative 10.7, for the best level since July, according to the New York Fed. A positive number indicates improving conditions, but it was better than the negative 7.5 forecast by economists. The index has been negative for five straight months.
Rental costs rose 3.6% in November compared to a year ago according to the Labor Departmen. The “rent of primary residence” category in the consumer price index pulled back from 3.7% annual gains in September and October. But rents are rising faster than wages. November’s real wages are up only 1.8% compared to a year ago. That gap may get worse. Multiple studies have shown that the supply of available homes is below the surging demand. Earlier this month, Harvard’s Joint Center for Housing Studies reported that households considered “rent-burdened” that spend more than 30% of their income on rent, is rising for all income groups.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/empire-state-index-shows-less-contraction-in-december-2015-12-15?link=MW_home_latest_news
http://www.marketwatch.com/story/rent-is-still-twice-inflation-even-with-slight-pullback-2015-12-15
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