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Wall St Drops As Home Sales Slump

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Wednesday August 23, 03:30 PM

US open: Wall St drops as home sales slump

LONDON (ShareCast) - A slump in home sales had Wall Street firmly in the red on Wednesday, as the report, published just after the market opened, erased all initial gains.
The National Association of Realtors announced that existing homes sales for July slumped 4.1% from the month before to an annual rate of 6.33m, the lowest level since January 2004.

FTSE 100 (FSI:^FTSE) Edit

Index Value: 5,857.90

Trade Time: 4:24PM

Change: Down 44.70 (0.76%)

Prev Close: 5,902.60

Open: 5,902.60

Day's Range: 5,853.80 - 5,906.30

52wk Range: 5,130.90 - 6,137.10

Crashing house markets spooks Wall Street as 32% of spending is housing related. We drop by double in percentage terms because we are 70% dependent on HPI-MEW? Sentiment-wise, of course.

Its recession fears:


Stocks turned lower early Wednesday as a report on existing-home sales came in even softer than expected, raising concerns that the economy might be more in danger of being derailed by a slowdown than by inflation.

The market just entered a new phase. Bad news for HPI is no longer good news for stocks due to IR concerns. The Street are pricing in a recession now and it will be a self-fulfilling prophecy. Recession in the US will mean we get hit hard. HPI is dead, my bet is on a very long, cold winter ahead for the housing market.

Edited by Realistbear

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Rocky picture on the other side of the pond

"Homebuyers are having a crisis of confidence," said Sam Lieber, chief executive of Alpine Management and Research. "Even if they want to buy a new house, they're worried they can't sell the house they're in. No one wants to be the guy who bought at the peak. There's a lot of fear in the market right now, and that's translating into an oversupply of homes."

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Guest Alright Jack

While we're on the subject of stocks. Does anyone know why eBay has done so badly this year?

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While we're on the subject of stocks. Does anyone know why eBay has done so badly this year?

I had eBay stocks a couple of years ago but sold them as it seemed that their growth rate was starting to slow. Could be related to slowdown in consumer spending worldwide. Fraud problems?

In the meantime, the US slowdown is spooking world markets and the threat of a recession seems to be becoming a self-fulfilling prophecy:

FTSE 100 (FSI:^FTSE) Edit

Index Value: 5,842.30

Trade Time: 9:01AM

Change: Down 17.70 (0.30%)

Prev Close: 5,860.00

Open: 5,860.00

Day's Range: 5,836.40 - 5,868.10

52wk Range: 5,130.90 - 6,137.10

^FCHI CAC 40 (France) 5,077.89 9:01 Down -4.84 (-0.10%) Chart, News, Components, more...

^GDAXI DAX (Germany) 5,749.50 8:47 Down -26.04 (-0.45%) Chart, News, Components, more...

^SPMIB S&P Mib (Italy) 37,264.00 9:01 Down -19.00 (-0.051%)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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