Rally Fades as Wall Street
Envisions Rate Hikes
The fever pitch of July and early August cooled as investors began to chew on variable comments from Federal Reserve members about the possibility of upcoming interest rate hikes.
The HVACR Business Stock Index slid in tandem with the national markets, down 29.24 points, or 2.30 percent, and closing at 1240.56. Declining issues definitively overpowered advancing issues by a 27-to-5 count.
The Commerce Department reported that housing starts were unexpectedly strong in July; they improved by 2.1 percent, while they were expected to decline.
The Commerce Department said that overall construction spending remained the same in July; home building and non-residential construction were strong, but government spending declined.
United Technologies tumbled 6.98 points, or 6.36 percent. Investment firm Wells Fargo & Co. re-stated its rating of “outperform.” Analysts at JPMorgan Securities cut their price target to $106, from $109.
Despite a downgrade, SPX Corp rose 1.17 points, or 6.36 percent, and was our top dollar gainer.
U.S. shipments of central air conditioners and air-source heat pumps totaled 785,255 units in July 2016, up 8.1 percent from 726,607 units shipped in July 2015.
Year-to-date U.S. shipments of gas warm air furnaces increased 5.3 percent to 1,519,632 units, compared with 1,442,979 units shipped during the same period in 2015.