Rover's Weekly Market Brief - 06/30/2023

Dividend Investing – Part 1

We have created a three-part blog series on dividend investing in Stock Rover. This week we feature part 1, which covers screening for dividend stocks and ETFs.

Economy

New orders for manufactured durable goods increased (+1.7%) in May to $288.2B, this follows a (+1.2%) increase in April, and (+3.3%) in March. Total durable goods orders are up (+3.5%) year over year. Much of the increase in the headline number is attributable to a (+32.5%) jump in new orders for passenger planes, this follows (-2.0%) and (+96.0%) readings for the previous 2 months, and offset a (-35.4%) drop in orders for military aircraft. Orders for new autos were also strong at (+2.2%) in May, and follow (0.0%), and (-0.2%) readings for the previous 2 months. Order for machinery increased (+1.0%), computers and electronics (+0.3%), and appliances (+1.7%). Transportation equipment reported up (+3.9%), buoyed by orders for passenger planes and new autos. Excluding the steep increase in orders for transportation equipment, “core” durable goods orders rose (+0.6%) and follows readings of (-0.6%) and (+0.3%) for the previous 2 months. New orders for capital goods increased (+2.8%) as nondefense orders increased (+6.7%). Excluding defense, new orders increased (+3.0%). Shipments of manufactured durable goods increased (+1.7%) to $288.1B and follows readings of (-0.6%), and (+0.7%) for the previous 2 months. Unfilled orders, up five of the last six months, increased (+0.8%) to $1,302B. Inventories increased (+0.2%) to $522.9 and follows readings of (+1.0%), and (-1.0%) for the previous 2 months.

The U.S Census Bureau reported that sales of newly built homes increased 12.2% to a seasonally adjusted rate of 763,000 May, up from a downwardly revised April rate of 680,000. Sales of newly built homes are up (+20.0%) from a year earlier and are at their highest level since February 2022. The Northeast had the biggest jump in monthly sales (+17.6%), followed closely by the West (+17.4%), South (+11.3%), and Midwest (+4.1%). The Northeast led the way in year over year sales, climbing (+110.5%), followed by the Midwest (+40%), and South (+22%). Only the West reported a year over year drop in sales (-0.6%). The average sale price for a new home sold in May was $487,300, down from $495,600 the previous month. The median new home sales price in May was $416,300, a (-7.6%) year over year decline. There were 428,000 new homes for sale as of the end of May, the vast majority of which were either under construction (259,000) or not yet started (100,000). The supply of new homes for sale decreased to a 6.7 month supply in May, as compared to 7.6 months in April and 7.9 months in March. The supply of new homes for sale in May 2022 was 8.3 months

The Personal Consumption Expenditures (PCE) price index increased 3.8% from May 2022, as compared to readings of (+4.3%), (+4.2%), (+5.0%), and (+5.4%) over the previous months. This is the slowest annual gain since April 2021. The PCE is watched closely by the Fed as it signifies future inflation. On a monthly basis, the headline number showed a (+0.1%) increase, as compared to (+0.4%), (+0.1%), (+0.3%), and (+0.6%) over the previous months. Consumer spending on goods and services edged up a (+0.1%), following a (+0.6%) increase in April. A (-0.4%) decrease in spending on goods was partially offset by (+0.2%) increase in spending on services. Within goods, spending on motor vehicles and parts, and gasoline and other energy goods were the largest contributors to the decrease. Within services, the leading contributors to the increase were “other” services, and transportation services.The closely watched core PCE index, which strips out the more volatile factors of food and energy climbed (+0.3%), slightly above the previous month’s (+0.4%). The Core PCE index continued to plateau with a year over year (+4.6%) increase, this follows readings of (+4.7%), (+4.6%), (+4.7%), and (+4.7%) over the previous months.

Upcoming Economic Reports:

Monday July 3 – ISM Manufacturing PMI (June)

Friday July 7 – Unemployment Rate (June)

Earnings Calendar:

 

Monday	Tuesday	Wednesday	Thursday	Friday
ReNeuron Group (RNUGF)	Gorilla Tech Gr (GRRR)	SmartCentres REIT (SRU.UN.TO)	Levi Strauss (LEVI)	Green Power Motor Co (GP)
Party City Holdco (PRTYQ)	Mark & Spencer Group (MAKSY)	Art’s-Way Manifacturing (ARTW)	Seven & i Holdings Co (SVNDY)	Nitori Holdings (NCLTF)