Caterpillar Tempered Sales with Global Supply Chain and Inflation Uncertainty

Caterpillar, a Dow component and gauge for global economic health reported mixed second-quarter numbers on Tuesday before the market open. $CAT beat on earnings but missed on revenue. Price realization was the highest in more than two years despite recessionary impact for the cyclical construction and mining businesses. The stock had significantly outperformed the market in 2022 after the market sold off the stock with concerns about the supply chain and inflation heading into 2022. However, $CAT fell to $183.51 … Continue reading “Caterpillar Tempered Sales with Global Supply Chain and Inflation Uncertainty”

US Housing Starts Fell Another 2.0% as Building Permits Fell 0.6% in June

US housing starts in June came in lower-than-expected 1.559m vs 1.580m expected. This is 2 percent below the revised May 2022 estimate of 1,591,000. Building permits 1695K vs 1785K, this is 0.6% below the revised May rate of 1,695,000. The key takeaway from the report was the broad-based softness in single-family starts and permits. The Fed’s Waller highlighted retail sales and housing data as potential reasons to raise rates 100 bps if they were ‘materially’ stronger than expected which they … Continue reading “US Housing Starts Fell Another 2.0% as Building Permits Fell 0.6% in June”

Weakening Housing Activity Seeing Construction Spending Contract

May saw total construction spending fall in the U.S. 1% month-over-month in May (consensus was expecting a gain of 0.4%). The fall was more dramatic when you consider an upwardly revised 0.8% increase (from 0.2%) in April. Housing starts were down -14.4% month-over-month in May. This month the weak levels of public construction spending were not offset by private residential spending with the weakening housing starts activity. On a year-over-year basis, total construction spending was up 9.7%. May 2022 Total Construction … Continue reading “Weakening Housing Activity Seeing Construction Spending Contract”

US Housing Starts Fell 8.9% as Building Permits Fell 7.0% in May

US housing starts rose in May came in much lower-than-expected 1549K vs 1701K expected. This is 14.4 percent (+/- 8.9%) below the revised April 2022 estimate of 1,810,000. Building permits 1695K vs 1785K, this is 7.0% below the revised April rate of 1,823,000. This does not auger well for US GDP ahead, Atlanta Fed’s GDPNow model estimated no growth in real GDP in Q2 versus prior forecast for 0.9% growth yesterday. That’s a very sharp slowdown in construction and it … Continue reading “US Housing Starts Fell 8.9% as Building Permits Fell 7.0% in May”

Caterpillar Earnings Beat but Global Supply Chain and inflation Uncertainty Remains

Caterpillar, a Dow component and gauge for global economic health reported better-than-expected fourth-quarter numbers on Friday. However, the market sold off the stock with concerns about the supply chain and inflation heading into 2022. $CAT shares fell to $201.16, down $11.01 or 5.19%. The industrial equipment manufacturer is right at the front line for global supplies. Caterpillar Inc. (NYSE: $CAT) Reported Earnings Before Open Friday $2.69 Beat $2. 27 EPS Forecast AND $13.8 Billion Missed $12.6 billion forecast in revenue  … Continue reading “Caterpillar Earnings Beat but Global Supply Chain and inflation Uncertainty Remains”

US Housing Starts Hit Nine Month High, up 1.4% as Building Permits Rise 9.1% in December

US housing starts rose in December 1.4% to a seasonally adjusted annualized rate of 1.702 mln units versus a consensus 1.650 mln from a revised 1.678 mln units in November (from 1.679 mln). Housing demand remains strong although high prices for building materials, lumber, supply constraints and labor shortages. Building permits rose 9.1% to a seasonally adjusted 1.873 mln in December up from a consensus 1.702 mln and a revised 1.717 mln in November (from 1.712 mln). The move suggests … Continue reading “US Housing Starts Hit Nine Month High, up 1.4% as Building Permits Rise 9.1% in December”

J.B. Hunt Transport Delivers Robust Earnings Despite Labor and Disruption Headwinds

J.B. Hunt Transportreorted better than expected Q3 earnings before the bell Friday.  $JBHT grew it’s revenues across all its segments despite labor challenges. With companies desperate to return to normal from the supply crunch freight demand has been accelerating.

US Housing Starts Rose 3.9% in August Surging in The Northeast 167.2%

US housing starts rose in August 3.9% m/m vs -7% prior, or 1615K v July’s revised 1554K. Starts surged the most in the Northeast (167.2% to the highest level since January). Building permits rose 6.0% m/m ighest level since April.

Ag Tech Giant Deere Crushes Earnings Despite Supply Chain Pressures

Iconic farming, forestry and construction equipment maker Deere is now seen as a rare hybrid of industrials and tech or Ag Tech. $DE beat second quarter earnings before the open Friday.  Supply cain issues are in focus. ARK Invest sees it as a tech company adding it to ARKQ. 

Zillow Earnings Beat as Housing Market Outlook Brightens

Real Estate firm Zillow returned a profit for the first quarter versus a loss a year ago. $Z is benefiting from the housing boom where US March housing starts soared in March 19.4%, the highest reading since June of 2006. The median existing home price was the highest on record.