Pending Home Sales Drop to Lowest Level in Nearly 3 Years — Market Talk
1006 ET - U.S. pending home sales fell 3.5% week-over-week to their lowest level in almost three years, Redfin says. Declining homebuying demand is giving buyers breathing room. It means less competition and more room to negotiate for the house hunters who are still shopping. New listings fell slightly, -0.5%, from a week earlier, but they're still up 1.5% year-over-year, and there are still hundreds of thousands more home sellers than buyers in the market. More homes on the market equals less pressure on buyers to rush into a decision or pay more than they want. Home-sale prices are holding steady. The median home-sale price rose 2% year-over-year. That stability means prices aren't soaring, and that sellers aren't in immediate danger of home values dropping. ([email protected])1001 ET - Oil continues its retreat from this week's earlier highs with Saudi Arabia increasing shipments via Oman and expectations that it could soon resume flows through the East-West pipeline. Diplomatic signals are providing some relief to fears of broader escalation, although the physical market remains tight, limiting downside, Christopher Tahir of Exness says in a note. "Tanker traffic through the Strait of Hormuz continues to fall, while tensions between Saudi Arabia and the Houthis leave Red Sea shipping and regional energy infrastructure exposed to renewed disruption," he says. WTI is down 1.9% at $100.46 a barrel and Brent falls 2.8% to $102.86 a barrel. ([email protected])0855 ET - Treasury yields decline as U.S. labor markets show resilience a day after the Fed's first hike since 2023. Weekly jobless claims decreased to 196,000 from 206,000 and were lower than WSJ consensus of 207,000, showing that layoffs remain contained. Housing starts fall 2.6% in August. The data comes as markets wonder how many more hikes are coming. Odds of another increase in October are priced at 53%, according to CME. "The credibility test for the Fed chief and the Fed appear to have been successfully held in place," Spartan's Peter Cardillo writes. The 10-year yield slips to 4.955% from yesterday's settlement of 5.003%, while the two-year drops to 4.691% from 4.725%. ([email protected]; @ptrevisani)0804 ET - Exports of Swiss watches remained resilient despite the drag from U.S. and Middle East headwinds, Citi's Thomas Chauvet says. Total exports of Swiss timepieces amounted to 1.79 billion Swiss francs in August, 9.1% higher compared with the same period last year. Shipments to the U.S. continue to be distorted by tariff-related volatility, while geopolitical disruption remained a headwind in the Middle East, Chauvet writes in a research note. ([email protected])0305 ET - Bitcoin rises slightly as U.S. stock futures point to a higher open, recovering from falls after Wednesday's interest-rate rise by the Federal Reserve. The Fed lifted rates by 25 basis points, which was more than 90% priced by markets, according to LSEG. However, the unanimous vote in favor of the move along with officials' projections for at least one more rate increase briefly hit market sentiment. Tech stocks helped to limit the impact of the decision though as the Philly Semiconductor Index advanced, Deutsche Bank analysts say in a note. Oil prices are also lower as headlines suggest an improved outlook for oil flows out of the Middle East, they say. Bitcoin rises 0.5% to $76,474, LSEG data show.([email protected])0152 ET - The Federal Reserve had no choice but to give the market a hike or risk a much bigger bond market selloff, which is shown in the 12-0 vote, Laffer Tengler Investments' Byron Anderson says in a note. "The Fed is trying to calm the bond market rather than signaling a hiking cycle," the head of fixed income says. The market narrative is on a collision course with the Fed from here on out, which means more volatility, he says. ([email protected])