Houses are becoming more expensive and potential home buyers seem to be suddenly shying away from the big ticket purchases.
According to fresh data released by the Mortgage Bankers Association,mortgage applications dropped for the second week in a row, after last week’s drop of 4.2%.
The Market Composite Index, an index that tracks new mortgage applications fell by 4%, while the Refinance Index fell by 5%.
MBA states that this is likely due to skyrocketing home prices and the fact that fewer homes are on the market.
“Tight housing inventory, obstacles to a faster rate of new construction, and rapidly rising home prices continue to hold back purchase activity,” are to blame, according to MBA’s Joel Kan.
U.S. stock futures were edged slightly higher Tuesday as investors cautiously weighed the strength of the recovery against inflation risks. AMC stock reached an all-time high, as oil continued its rally.
- S&P 500 futures: 4,207.00 +0.20%
- Nasdaq futures: 13,649.50, +0.01%
- DOW futures: 34,633.00, +0.24%
U.S. Dollar and Treasuries — Dollar strengthened, and treasury yields crept up.
- U.S. Dollar Index (DXY): 90.17, +0.38%
- 10-year Treasury yield: 1.615%, from previous 1.581%
- 2-year Treasury yield: 0.160%, from previous 0.140%
Stocks To Watch
The world’s largest meat-producing company JBS SA suffered a devastating cyberattack. The hack shut down all its U.S. beef plants. Plants in Canada and Australia were also targeted. A Russian cybergang REvil is likely responsible for the attack. The company has since announced that it has made “significant progress” in resolving the attack and promised to reopen the majority of its plants on Wednesday.
AMC‘s deal with Mudrick Capital firm went sour today, as the investment firm disclosed it no longer held any AMC stocks. The firm sold $230.5 million shares the same day they acquired them.
But that didn’t deter retail investors, who pushed the stock to an all-time high in premarket trading. Especially after the company announced a “shareholder rewards program,” under which AMC shareholders are supposed to get special treatment at theaters.
Today, AMC and I launch an innovative effort to communicate often with AMC shareholders. #AMCInvestorConnect gets you AMC Stubs benefits and ***SPECIAL SHAREHOLDER REWARDS*** for those who patronize AMC Theatres in the U.S. Sign up is completely free at https://t.co/b5l62CQlD0 pic.twitter.com/h42VGCCD1I
— Adam Aron (@CEOAdam) June 2, 2021
This “innovative effort” was announced by AMC’s CEO Adam Aron, who supposedly embraced AMC’s “meme stock” status. The stock traded as high as $41.90 on Wednesday, boosted by retail investor confidence and its “meme stock” status.
Oil stocks are continuing to rally, at about the same rate that crude prices are rising.
- JBSAY JBS S.A. $12.14, +4.16%
- AMC AMC Entertainment Holdings, Inc. $39.80, +23.60%, 13.24M (volume)
- OXY Occidental Petroleum Corp. $28.80, +1.16%, 41.12K (volume)
- MRO Marathon Oil Corp. $13.95, +1.38%, 39.73K (volume)
Commodities To Watch
Oil continues its rally. Gold slid below $1,900, only to rebound shortly after.
- WTI crude: $68.46, +1.09%
- Brent crude: $71.14, +1.27%
- Gold: $1,900.50 -0.24%
The global crypto market cap increased by 2.94% in the last 24 hours. Dogecoin surged as Elon Musk tweeted another Doge meme.
- DOGE: $0.4391, +35.93%
- BTC: $36,982.68, +1.32%
- ETH: $2,678.48, +1.08%
- XMR: $269.68, 4.73%