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Good morning investors! The market didnāt do much last week but some major things are expected this week.
Fun fact: Total housing inventory has steadily increased throughout this year, according to NAR data. Inventory at the end of May stood at 1.28 million units, 6.7% higher from April and up 18.5% from a year ago.
Today we cover:
What to expect this week.
The housing situation.
Making money series ā part I
š Economy and News
Things to keep an eye on this week
Hereās whatās expected this week:
US inflation
The Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, is scheduled for release on Friday. This will indicate whether the recent trend of slowing inflation is continuing.
However, recent PCE figures have not met expectations. The latest data showed U.S. inflation remaining steady in April, contrary to forecasts.
If another similar reading occurs, it could weaken the argument for imminent rate cuts. While the Fed is cautious, market participants are still anticipating two rate cuts this year.
Additionally, the economic calendar includes June consumer confidence data, May reports on new and existing home sales, a third estimate of first-quarter economic growth, and May durable goods orders.
Oil Prices
Oil prices fell about 1% on Friday due to concerns that global oil demand growth might be impacted by a strong U.S. dollar and negative economic news from certain regions.
For the week, both major crude benchmarks rose about 3%, following a 4% increase the previous week.
The U.S. dollar reached a seven-week high against a basket of other currencies on Friday, driven by the Federal Reserve's cautious stance on rate cuts compared to more dovish policies elsewhere.
Lower interest rates could support oil prices, which have struggled this year due to weak global demand. A U.S. rate cut would lower borrowing costs, potentially boosting oil demand as production increases.
Eurozone Inflation
France, Italy, and Spain will release preliminary June inflation data on Friday.
This data will set the stage for a eurozone-wide report the following week, which is crucial for traders assessing the likelihood of future rate cuts by the European Central Bank this year.
In addition, EU and China are set for talks on planned electric vehicle tariffs.
Global hits:
Apple Intelligence wonāt launch in EU in 2024 due to antitrust regulation. Plus, ChatGPT ā soon to be integrated into Siri ā is banned in China.
U.S. is closer to curbing investments in Chinaās AI, tech sector.
German government bond yields fall on weak survey data.
š Homes in America are the most expensive theyāve ever been, according to one measure.
The median price of a previously owned US home climbed for the eleventh consecutive month in May, up 5.8% from a year ago, to $419,300, the National Association of Realtors said Friday. Thatās the highest price ever recorded by NAR.
Housing affordability remains in the gutter: In addition to sky-high home prices, mortgage rates are still higher than anything seen in the decade before 2022. There still arenāt enough homes in the market to keep up with demand, despite some improvements in recent months.
The situation could improve somewhat later this year, when the Federal Reserve is expected to begin paring back interest rates from a 23-year high, which should bring down mortgage rates. But Fed officials have penciled in just one rate cut for this year, and the days of ultra-low interest rates are long gone.
Recent research from Zillow shows that in order for a median-income household to afford a monthly mortgage payment on the typical US home, it would need to save up more than $127,000 for a down payment. Thatās roughly double the median salary of a US worker.
However, reports show that renters are struggling more than homeowners in Americaās tough housing market.
Surprising: Chipmaker Nvidia became the most valuable publicly traded U.S. company for a period this week, topping Apple and Microsoft. However, Nvidia is nowhere to be found on the list of best-known brands, while tech peers Apple, Microsoft, Amazon and Google are at the top.
Why do you think Nvidia isnāt that popular?
š Stocks
S&P 500 5,464.62 (-0.16%)
DJIA 39,150.33 (+0.040%)
NASDAQ 17,689.36 (-0.18%)
BRENT CRUDE 85.53 (-0.55%)
* Prices as of Jun 24th, 12:20 AM UTC
Stocks on a streak
Many investors believe the long-term case for tech stocks is solid, given their strong earnings and excitement over the revolutionary potential of artificial intelligence. But huge price gains, including Nvidia's 155% year-to-date run, have stirred worries that the tech rally might be getting stretched.
Market laggards such as small caps and so-called value stocks such financials and industrials may be looking like bargains.
We must mention that this has been the stock marketās longest stretch without a 2% sell-off since the financial crisis.
The S&P 500 has gone 377 days without a 2.05% sell-off, and experts are divided. Some think the market will fall this year while some see it growing even more.
Surprise: Tesla internal data shows company has slashed at least 14% of workforce this year.
Also check: Under Armour to pay $434 million to settle lawsuit over sales disclosures.
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šµ Personal Finance
Make money from home - Part I
We know you want to make money from home, so weāre starting a series this week where weāll cover some great ways to make money.
#1 Become a Product Tester to Make Money Fast
Today All big and small companies look for product testers who want to know how to make more money. As a product tester, your job will be to test new products including digital goods.
Join a platform like Toluna, Alba Volunteers, and User Testing to start today.
Pick one that offers products that are relevant to your experience. Also, remember that you may have to provide written or video reviews to share your feedback after youāve tested a product.
How Much Money Can I Make By Working as a Product Tester
Most jobs pay about $11 per hour with some paying less or more. However, not all companies offer money for testing products and some will only give you free samples to try and keep.
A degree isnāt needed, but you must have relevant background or education, i.e: you are more likely to get selected to test beauty products if you are into fashion. Most websites will require you to create a profile thatāll be used to gauge your skills and find if youāre suitable to test a specific product.
Want more? Check this playlist on our channel:
š° Be a Better Investor
āTo get rich, you have to be making money while you're asleep.ā
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