The US dollar hit intraday lows after the worst pending home sales report in three years. The 7.7% monthly decline in April highlights the impact of rising interest rates, especially as Treasury yields rose during the month.
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The market is struggling to figure out where the American consumer is. We've seen US consumer confidence decline for most of the year, but this week's report was surprisingly strong. Meanwhile, expensive goods are suffering, and there is more talk of a buildup of inventory in auto parts.
Electronics are also suffering but that may also be due to heavy buying during the pandemic.
“The combination of macro factors continued to create a challenging sales environment for our category during the quarter and our sales were slightly below our expectations,” Best Buy CEO Corey Barry said in today's earnings release.
Most consumer-facing companies reported good earnings today, with the exception of Kohl's, which was down 25%. However, other estimates beat estimates, although there is no guidance for the year and there is a lot of caution about the second quarter in particular.