In May 2016, non-farm payrolls rose by 38,000, which missed Wall Street analysts’ estimate of 160,000 by a wide margin.
Aside from employment, the most important indicator of economic well-being is wages.
Planned job cuts fell 27% in May year-over-year. They fell 53% from April.
In April 2016, there were 5.8 million job openings, up 4% YoY (year-over-year).
The week after the jobs report doesn’t have much data. This week isn’t an exception. The next big event is the June FOMC meeting in just under two weeks.
A common theme from central bankers these days is that while they can stimulate more, they’re reaching the point of diminishing returns.
In April, housing starts rose to an annualized rate of 1.2 million from 1.1 million the month before. Building permits rose from 1.08 million to 1.13 million.
In April, the share of existing home sales attributable to the first-time homebuyer was 32%—an increase from 30% in March.
Construction spending rose to a seasonally adjusted annual rate of $1.1 trillion in April from $1.2 trillion in March. Spending rose 4.5% YoY.
The amount of regulations and taxes instituted over the past ten years increased the cost of building. It’s difficult to build starter homes that are affordable.
In Toll Brothers’ North segment, the ASP (average selling price) rose from $630,000 to $705,000 in fiscal 2Q16.
After Toll Brothers reported fiscal 2Q16 earnings on May 24, 2016, its stock rose by $2.41 to close the day at $29.51.
In fiscal 2Q16, Toll Brothers’ (TOL) gross margin, excluding interest and write-downs, rose to 25.7% compared to 25.3% a year ago.
Toll Brothers (TOL) reported that its ASP (average selling price) for fiscal 2Q16 was $855,500, a drop of 2% on a quarter-over-quarter basis.
Toll Brothers (TOL) reported fiscal 2Q16 revenues of $1.1 billion. Deliveries in the second quarter rose 31% in dollar terms and 9% in units.
In April 2016, existing home sales reached an annualized 5.47 million rising by 6% YoY over March, when existing home sales were 5.36 million.
The NAHB Wells Fargo Housing Market Index measures homebuilder sentiment has been increasing steadily since 2009. Recently, it’s started to accelerate.
Overall, permits for single-family residences rose slightly from 725,000 to 736,000 in April.
In April 2016, housing starts rose from 1.1 million to ~1.2 million, which was above Wall Street analysts’ estimate of 1.1 million.
On Friday, May 27, we’ll get the second revision to 1Q16 GDP. Wall Street is forecasting the number to come in at 0.9%.