Good morning investors! S&P 500 fell for a third day, as elevated global bond yields and oil prices weigh on market.
Today we cover:
Changing housing market
Home Depot beats
Overtime tax deduction
📊 Economy and News
US Single-Family Housing Starts Plunge in July
U.S. single-family homebuilding fell sharply in July, hit by higher mortgage rates and a large inventory of unsold new homes.
Single-family starts dropped 9.9% to a seasonally adjusted annual rate of 808,000 units, according to the Census Bureau. That marked a 15.7% decline year-over-year. Total housing starts (including apartments) sank 12.4% to 1.239 million units—well below economists’ forecast of 1.35 million.
Building permits for single-family homes rose 2.5% to 894,000, while overall residential permits increased 5.0% to 1.443 million.
The housing market remains under pressure from elevated mortgage rates (still near 6.77% for a 30-year fixed loan) and limited existing-home supply, both of which continue to hurt affordability and sales.
Global hits:
Canada braces for 50% US tariffs on $20 billion in goods as Canada’s July annual inflation accelerates to 3% as gasoline rebounds.
Euro zone bond yields reach multi-year peaks amid oil surge
Colombia’s economy expands 3.5% in second quarter.
Check this: 30-year Treasury yield tops 5.33%, new 19-year high, on inflation and spending concerns.
US securities regulator proposes long-awaited crypto rules.
Reminder: Trump says no talks scheduled with Iran as he teases action in Hormuz Strait and attacks continue in the waterway.
📈 Stocks
S&P 500 7,691.76 (-0.69%)
DJIA 53,343.40 (-0.2%)
NASDAQ 26,289.71 (-1.33%)
BRENT CRUDE 91.01 (+0.15%)
* Prices as of Aug 19th, 12:20 AM UTC
Home Depot Beats Expectations
Home Depot reported fiscal second-quarter results that beat Wall Street expectations on the top and bottom lines.
Home Depot saw comparable sales rise 1.7%, beating expectations that they would be up 0.9%.
The home improvement retailer also reaffirmed its full fiscal-year guidance.
The company said it expects total sales growth for the year to be between 2.5% and 4.5% and operating margin between 12.4% and 12.6%.
Its CEO said that Home Depot’s customer is “a healthy cohort,” though he said the company has still not seen consumers return to big projects.
Interesting: Apple will Price is what you pay. Value is what you get."a 5% commission on in-app purchases under its new fee system for iPhone apps. The company says the schedule will resolve disputes with regulators over the Digital Markets Act. Apps sold via Apple’s App Store will face a 26% commission on digital goods and services.
Surprising: Hims & Hers CEO says FTC lawsuit misunderstands how the company works. Also, Disney-owned ABC files First Amendment lawsuit against FCC. Elsewhere, Kalshi seeks to launch ‘perps’ on equity indexes as it moves in on traditional exchanges’ turf. Lastly, OpenAI rolls out ChatGPT for Teens experience with ‘stronger built-in safety protections’.
💵 Personal Finance
IRS Clarifies Overtime Tax Deduction for 2026
The IRS has updated its guidance on the “no tax on overtime” deduction, making it easier for eligible workers to claim in the 2026 tax year.
Employers must now report the qualifying overtime amount on workers’ W-2s (Box 12, code TT). This removes the need for most taxpayers to calculate the figure themselves, as many had to do for 2025 returns.
The deduction covers only the overtime “premium”—the extra half of the 1.5x rate required under the Fair Labor Standards Act—up to $12,500 for single filers or $25,000 for joint filers. It begins phasing out at $150,000 (single) or $300,000 (joint).
More than 29 million taxpayers claimed the break for 2025, with an average deduction above $3,100. Workers should still compare their W-2 figure against pay stubs and request a corrected form if needed.
💰 Be a Better Investor
Price is what you pay. Value is what you get."
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