Good morning. US stock futures dipped in Wednesday morning trading as investors continued to pore over key earnings results.
📉 US homebuilder confidence hits the skids
Builder sentiment began sliding in August, the same month where rates on home loans exceeded 7%.
Amid the Federal Reserve’s rate hike campaign, mortgage rates have steadily risen since last year, now remaining at a two-decade high.
Demand for homes was bolstered in the first half of 2023 as high rates discouraged homeowners from selling, limiting inventory and lifting the appeal of new construction.
💡 So what: A retreat in homebuilder confidence, coupled with historically high interest rates could make the dream of homeownership for many Americans harder to achieve. The impact of the home construction market also has spillover effects on the rental market as an inability to purchase homes may drive demand for greater rental accommodation causing rents to rise as well.
Wednesday - Fed Beige Book, New York Fed President John Williams Speaks
Thursday - Fed Chairman Jerome Powell Speaks, Initial Jobless Claims (wk end Oct 13)
Friday - No Major Economic News
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🚙 Tesla does major recall
📈 US economic data defies recession forecasts
WHY: The Atlanta Fed’s GDPNow forecast was boosted to show the economy grew an annualized 5.4% in the third quarter which would be the strongest since the end of 2022.
⚔️ Meta, US government square off over privacy concerns
WHY: Meta relies on digital ads targeted using personal data for more than 98% of its revenue. The company is also battling short video app TikTok for young users’ attention.
🖥️ IRS test waters with new tax filing system
WHY: The IRS faces intense blowback from private tax preparation companies that have made billions from charging people to use their software.
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