Markets settled a bit after yesterday’s downdraft. At the close the Dow fell 6 points to 20,661 on lighter trading volume. IBD now has markets listed as “under pressure” and BTS is pending review with a possible move to cash if conditions deteriorate further. Yesterday’s selloff was the opposite of the rally we saw after the Trump speech to congress. While underlying economic data continues to look good the markets appear to be more influenced by sentiment surrounding the news coming out of DC.
Back in 2011 global investment banking revenues were split about 50/50 betwixt US and European Banks. Thanks to struggles in Europe and a recovery in America, US banks now hog about two-thirds of global investment banking revenue. The top 5 spots in global investment banking now belong to JP Morgan, Citigroup, Goldman, Bank of America and Morgan Stanley. Deutsche Bank is in the number six spot followed by Barclays, Credit Swiss and HSBC.
The National Association of Realtors reported that existing home sales fell 3.7% in the latest reading after hitting their fastest sales pace in 10 years was recorded in January. While sales were off in this latest reading, existing home prices were up 7.7% and Lawrence Yun, NAR chief economist said that low supply in the affordable price range continues to drive price growth while pressuring budgets of potential buyers. The supply of existing homes fell 6.4% YOY and is now down for the 21st month in a row. The limited inventory should be a boost for builders provided they can find land and labor.
Oil prices remain under pressure. OPEC cut production last year by about 1.8 million bpd but since late 2016 US producers have added about 600K bpd to output and stockpiles, along with rig counts, continue to grow. WTI crude closed the day at $48.04 after dipping to $47.