AMJ (Alerian MLP Index tracking fund)

Sales of previously owned homes fell 0.7% in Aug from Jul to a seasonally adjusted, annualized rate of 4.04M units, according to the National Association of Realtors (NAR).  Sales were down 15.3% from Aug of last year.  This read is based on closings for contracts likely signed in Jun & Jul, when the average rate on the popular 30-year fixed mortgage was in the high 6% range.  It moved over 7% toward the end of Jul & stayed there, hitting affordability hard.  “Home sales have been stable for several months, neither rising nor falling in any meaningful way,” said Lawrence Yun, chief economist at the NAR, in a release.  “Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run.”  It is not, however, just higher rates hitting potential buyers.  They are also not finding much on the market.  There were just 1.1M units for sale at the end of Augt, down 0.9% for the month & down just more than 14% year over year.  Inventory is now at a 3.3-month supply.  A 6-month supply is considered balanced between buyer & seller.  Tight supply has turned prices decidedly higher again.  The median price of a home sold in Aug was $407K, up 3.9% from a year ago & the highest reported price for the month of Aug.  Yun said supply needs to double to moderate these price gains.  “Homeowners are in fine shape. It’s Realtors and mortgage brokers that are challenged, and renters are frustrated,” Yun added.

Home sales stick near recent lows in August, but prices continue to climb 

10-year Treasury yield hits its highest level since 2007 as jobless claims decline

Cisco (CSCO), a Dow stock, is acquiring cybersecurity software company Splunk (SPLK) for $157 per share in a cash deal worth about $28B in its largest acquisition ever.  “From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient,” CEO Chuck Robbins said.  The deal, which is expected to close in the 3rd qtr of 2024, continues a months-long buying spree to build out its cybersecurity offerings.  CSCO expects the deal to be cash flow positive & gross margin accretive in the first year following the closing of the acquisition; it will be accretive to CSCO's non-GAAP EPS by the 2nd year.  Robbins expected organizational synergies to become clear & impactful within 12-18 months.  The company will finance the deal with a combination of cash & debt.  “Together, we will become one of the largest software companies globally,” Robbins added.  CSCO stock fell 2.15 (4%).
If you would like to learn more about CSCO, click on this link:
club.ino.com/trend/analysis/stock/CSCO _aid=CD3289&a_bid=6aeoso5b6f7

Cisco acquires cybersecurity company Splunk in cash deal worth $28 billion

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