Dow gained 163, decliners over advancers 3-2 & NAZ sank 294.  The MLP index was up 1+ to the 237s & the REIT index fell 1 to the 381s.  Junk bond funds remained out of favor & Treasuries had very heavy selling, sharply increasing yields.  Oil crawled higher in the 75s & gold dropped 8 to 1962 (more on both below).

AMJ (Alerian MLP Index tracking fund)

Tesla (TSLA) tumbled after investors soured on initially positive results due to imprecise commentary from CEO Elon Musk & other execs on the company's latest vehicle, the Cybertruck & a planned robotaxi-ready car.  Musk also cautioned that while the company would “continue to target 1.8 million vehicle deliveries this year,” TSLA also expected that “Q3 production will be a little bit down because we’ve got summer shutdowns” for what the CEO described as “a lot of factory upgrades.”  Analysts also highlighted concerns with TSLA's margin “headwinds,” which at 9.6% was the lowest result for at least the last 5 qtrs.  Early this month, TSLA reported 466K total vehicle deliveries for Q2, the closest approximation of sales that TSLA reports.  But Musk didn't offer precise delivery volumes for the new Cybertruck, only sayingthat the Cybertruck would be produced “in high volume next year,” with an unknown quantity being delivered in 2023.  Cybertruck “factory tooling” is on track but the company is only producing “release candidate” builds, the company said.  TSLA stock plunged 28.38 (10%).
If you would like to learn more about TSLA, click on this link:
club.ino.com/trend/analysis/stock/TSLA_aid=CD3289&a_bid=6aeoso5b6f7

Tesla shares down on slimming margins, Cybertruck concerns

Mortgage rates post biggest decline since March

US mortgage rates inched lower this week, backing off from an 8-month high as inflation showed welcome signs of cooling.  Mortgage buyer Freddie Mac said that the average rate on the 30-year loan fell to 6.78% from 6.96% the previous week, the first decline since Jun & the biggest one-week drop since Mar.  The rate remains well above the 5.54% recorded just one year ago & the pre-pandemic average of 3.9%.  "As inflation slows, mortgage rates decreased this week," said Sam Khater, Freddie Mac's chief economist.  "Still, the ongoing shortage of previously owned homes for sale has been a detriment to homebuyers looking to take advantage of declining rates. On the other hand, homebuilders have an edge in today’s market, and incoming data shows that homebuilder sentiment continues to rise."  The average rate on a 15-year mortgage, which is more popular among homeowners who choose to refinance, dropped to 6.06%, down from last week's 6.3%.  The Federal Reserve's aggressive interest-rate hike campaign sent mortgage rates soaring above 7% last year, quickly cooling the red-hot housing market.  But rates have been slow to retreat from the nearly 2-decade high, forcing many would-be buyers out of the market.  Even just a minor change in rates can affect how much would-be homebuyers pay each month.  A recent study from LendingTree compared the average monthly payments on 30-year fixed-rate mortgages in Apr 2022, when the rate hovered around 3.79%, & 1 year later, when rates jumped to 5.25%.  It found that higher rates cost borrowers hundreds more each month & potentially added as much as $75K over the lifetime of the 30-year loan.  Despite higher interest rates, home prices have been slow to fall as would-be buyers face a worsening inventory shortage.  That is largely because sellers who locked in a low mortgage rate before the pandemic began have been reluctant to sell with rates continuing to hover near a 2-decade-high, leaving few options for buyers.

Mortgage rates post biggest decline since March

Gold futures finished lower to pare an overall gain for the week so far.  The $ & Treasury yields strengthened, pressuring prices for the precious metal, after US data showed a drop in weekly US jobless claims to their lowest in 2 months.  Gold for Aug settled at $1970 an ounce, down $9 (0.5%).  Week to date, prices have edged up by 0.3%.

Gold Futures Pare Week-To-Date Rise

Yesterday's declining stockpile data & weak demand stats didn't help oil extend its recent rally.  Today's US data painted a mixed picture for the economy as the labor market still looks tight, while other parts of the economy remain weak.  US crude futures finished slightly higher at $75.63 a barrel & are up 0.3% for the week.

Oil Ends Slightly Higher in Muted Session

The auto & home sales are an important part of the US economy.  High level of interest rates are hurting sales.  Additionally macro economic data keeps coming in mixed.  That is not part of a robust economy.  The stock rally is very tired & needs a rest.  It's also called a pause.  Already Dow dropped about 150 in today's PM & NAZ continues to be weak.

Dow Jones Industrials