Transcript:
Tom Vaughan:
Everybody, welcome to Tuesday, the S&P 500 was down point 8% today. And what happened was after hours last night, a company called Snap, which is a digital advertising company that does Snapchat reported earnings that missed expectations and forward guidance, revolving around the fact that they saw higher prices due to inflation and higher cost to labor and what have you. And then all the other digital advertising companies out there got hit today to like Google, and Facebook and Twitter and those type of companies. The one nice thing that did happen today was that we saw a turnaround in the market, it opened up you know, Lo, what lower in the morning, and then we turned around quite a bit on Friday of last week, had the same thing hit the low for the year, rallied all the way back up the positive, followed through with a nice upward day yesterday. So today was actually kind of in line with what I was looking for after a couple of rally days happening. And so it’ll be very interesting to see what happens going forward here, you know, for the rest of this week, and whether we can hold up these prices or not, and what have you, in this particular environment, there’s definitely some buying that is coming in at these prices. And that stretch that’s happened to the downside on the S&P 500.
We’re seeing some bounce that we’ll see if it’s maintained, and continue upward. And again, I think the rest of this week will be important. We did see the sale of new homes drop in April. And a fair amount, actually, which is not surprising, because the mortgage rates have gone up so much. But if you look at the chart, going back over a longer period of time, the New Home Sales came back down to about what we saw for the average prior to the pandemic. And so that’s, you know, really more reflected in the fact that we had this huge bubble in home sales that’s happening, they’re going to be trying here with raising rates to slow down the housing market growth, and slow down the stock market growth. Those are two big pieces that really drive consumer behavior, because we need to slow down consumer behavior a little bit. So again, slow downs are not bad in this environment. Because we’re working off of a very hot economy, we need to slow down to bring down inflation, obviously need to bring up supply also. But that’s another story. And so what we’re really looking for here is just you know, how far things come down what those trends are looking at those different indicators. And so so far, we’re kind of in that slow down category as far as that goes. But nothing too dramatic yet. So we’ll see how this plays out. But look forward to seeing what’s going to happen this week and see what’s going to happen tomorrow. So we’ll talk to you then. Thank you