U.S. stocks are off to a slow start today after their huge rally on Monday in which we saw their best performance since early April. The Dow opened up about 90 points lower, and the S&P opened about .25% lower. However, the S&P seems to be turning things around this morning and has made up its opening losses and is now up on the day. At the time of this writing the Dow is still in the red.
What is potentially of larger concern is what is going on in housing market. The numbers are in and they are abysmal. April building permits were down a whopping 20% while new housing was down a staggering 30%. Some see these numbers as a positive, believing that we have hit the bottom of the market and we can only go up from here. Others are less optimistic and believe the worst is yet to come. As has been the case this whole pandemic, there is so little information out there and each state is in a different stage of “reopening” it is hard to speculate on the future. All we can do is stay on top of the information we have at hand and use that to make the best trading decisions. Stay tuned for updates.