U.S. Serious Delinquencies Spiking Despite Strong Housing Demand

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CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for July 2020. On a national level, 6.6% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure). This represents a 2.8-percentage point increase in the overall delinquency rate compared to July 2019, when it was 3.8%.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201013005235/en/

CoreLogic National Overview of Mortgage Loan Performance, featuring July 2020 Data (Graphic: Business Wire)

To gain an accurate view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency, including the share that transitions from current to 30 days past due. In July 2020, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:

  • Early-Stage Delinquencies (30 to 59 days past due): 1.5%, down from 1.8% in July 2019, and down from 4.2% in April when early-stage delinquencies spiked.

  • Adverse Delinquency (60 to 89 days past due): 1%, up from 0.6% in July 2019, but down from 2.8% in May.

  • Serious Delinquency (90 days or more past due, including loans in foreclosure): 4.1%, up from 1.3% in July 2019. This is the highest serious delinquency rate since April 2014.

  • Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.3%, down from 0.4% in July 2019. The July 2020 foreclosure rate is the lowest for any month in at least 21 years.

  • Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.8%, unchanged from July 2019. The transition rate has slowed since April 2020, when it peaked at 3.4%.

Despite home values, measured by the CoreLogic Home Price Index, rising at an accelerated rate, unemployment

Strong gains for technology stocks send Wall Street higher

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Stocks marched higher again on Monday, as Wall Street extended its gains from last week’s rally, the market’s best in three months.

The S&P 500 rose 1.6%, following up on strengthening in stock markets around the world. Big Tech stocks, including Apple and Microsoft, powered much of the gains. Their businesses have proven to be practically impervious to the pandemic, unlike companies that would benefit from a strengthening economy.

The market’s latest upward push came as Wall Street appeared to largely shrug off the latest signs that Democrats and Republicans are no closer to reaching a deal on more aid for the economy, which remains hobbled by the pandemic. Over the weekend, Democratic House Speaker Nancy Pelosi criticized the latest offer from the Trump administration on a stimulus package as “one step forward, two steps back,” while the president’s fellow Republicans called it too expensive.

Investors may be betting that Congress will deliver a more generous aid bill after the election, should Democrats regain the majority in Congress, as some polls suggest.


“The market is expressing some comfort with Democrats taking the White House and the Senate, if it means that there will be more stimulus,” said Willie Delwiche, investment strategist at Baird. “But the reality is it’s several months away before anything could get passed. It does raise a question in my mind whether or not some of this is too much, too soon in terms of the market anticipating stimulus at this point.”

The S&P 500 rose 57.09 points to 3,534.22. The benchmark index is on a four-day winning streak and is now within 1.4% of its all-time high set Sept. 2. The Dow Jones Industrial Average climbed 250.62 points, or 0.9%, to 28,837.52. The Nasdaq composite, which is heavily weighted with technology stocks, gained 296.32 points, or

Apple climbs as Wedbush says it will benefit from ‘once in a decade’ iPhone 12 launch that spurs strong demand

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a hand holding a video game remote control: Reuters


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Reuters

  • Apple surged 4% on Monday ahead of its “Hi, Speed” event on Tuesday, where it’s expected to launch its next-generation iPhone 12.
  • Wedbush said Apple’s iPhone 12 would represent a “once in a decade” launch, kicking off its 5G supercycle.
  • Wedbush said that based on its channel checks, Apple and its suppliers are anticipating “stepped-up demand” for its 6.7-inch iPhone 12 Pro Max.
  • Morgan Stanley said in a note last week that strong demand for Apple’s higher-priced iPhone 12 models could help boost the iPhone’s average selling price, leading to more upside for the stock.
  • Visit Business Insider’s homepage for more stories.

Expectations are high for Apple’s “Hi, Speed” event on Tuesday.

Wedbush said in a note on Sunday that the event, where Apple is expected to launch the iPhone 12, represented a “once in a decade” opportunity for Apple to capitalize on its massive iPhone install base of nearly 950 million users.

Wedbush isn’t alone in thinking that the event will be a big deal for Apple. Morgan Stanley said in a note last week that it expected it to be “the most significant iPhone event in years.”

Shares of Apple jumped 4%, to $121.71, on Monday, leading the market higher and helping technology stocks surge.

Read more: GOLDMAN SACHS: Buy these 15 stocks set to deliver the strongest possible profit growth and subsequent returns through year-end

Wedbush said it expected four new iPhones, including a 5.4-inch iPhone 12 mini and a 6.7-inch iPhone 12 Pro Max, which would be the largest iPhone display ever.

Video: Investors on what a new iPhone could do for Apple’s stock price (CNBC)

Investors on what a new iPhone could do for Apple’s stock price

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UP NEXT

Morgan Stanley said the 6.7-inch iPhone 12 could cost as

There’s a Strong Case for Nvidia Stock to Reach $600 This Year

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a close up of a green boat: A racecar featuring Drive PX 2 technology from Nvidia (NVDA) parked.


© Source: Steve Lagreca / Shutterstock.com
A racecar featuring Drive PX 2 technology from Nvidia (NVDA) parked.

The last time I highlighted opportunity in NVIDIA (NASDAQ:NVDA), I called it one of the top “blood in the streets” opportunity. I also said NVDA stock was aggressively oversold on relative strength, MACD, and Williams’ %R.



a close up of a green screen: A racecar featuring Drive PX 2 technology from Nvidia (NVDA) parked.


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A racecar featuring Drive PX 2 technology from Nvidia (NVDA) parked.

In fact, if you look at a two-year chart of the NVDA, you can see that when these technical indicators align in either oversold or overbought territory, we typically see a pivot in the other direction. I also noted there were a good deal of catalysts that were likely to drive it higher.

At the time, the NVDA stock traded at a low of $243.48. It’s now topped $553.

Even now, I’d back up the truck on the NVDA stock. Once it breaks above double top resistance at $589.07, the technology stock could easily see $600, near-term.

A Closer Look at NVDA Stock

New gaming consoles from Microsoft (NASDAQ:MSFT) and Sony Corporation (NYSE:SNE) will be launched later this year, and serve as a major catalyst, as I also noted in March.

At the time, Bernstein analyst Stacy Rasgon also said NVDA could benefit from a PC GPU upgrade cycle on par with what was seen following the launch of prior generation consoles, as highlighted by Benzinga contributor, Shanthi Rexaline.

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With millions working, schooling and playing online, the teleconference boom has been explosive. Capitalizing on the momentum, Nvidia announced a new platform called Maxine that will help make online video experiences far better.

“One of the biggest challenges in videoconferencing is video quality,” says Motley Fool contributor Nicholas Rossolillo. “Reducing the number of pixels lowers

Why Is The Market So Strong And Economy So Weak?

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The continuing strength of the stock market, even as the coronavirus pandemic batters the U.S. economy, has baffled many investors. The Dow Jones Industrial Index fell some 35% in 20 trading days the first three weeks of March as COVID-19 began spreading rapidly globally, but it has since gained nearly 60% to levels above 28,650. At the same time, the Commerce Department reported the U.S. economy shrank 31.7% in the April-June quarter. Part of our job at Equitas is to research many areas of the market and the economy, analyze the current environment, and to search for the investment opportunities. While there are numerous views and theories, in this KnowRisk Report we explore and expand on why the stock market is so strong, while the economy is so weak. We start with Wharton finance professor Itay Goldstein who has boiled it down into two reasons: the long-term prospective of the stock market, and the unprecedented cash infusion of the Federal Reserve. 

The First Reason

Goldstein says at all points in time “the stock market is meant to be forward-looking,” Indeed stocks have risen during seven of the past 12 recessions going back to World War II. “In general, the stock market is a bit different from the economy, in the sense that what you see right now in the economy is what is going on right now” such as production, employment and so forth, he noted. Even in “normal times,” stock prices and economic output would not move in tandem, according to Goldstein. In fact, we may have situations “where the stock prices may predict something that is going to be different from what we see right now.” The S&P 500, for instance, is driven more by manufacturing, while U.S. gross domestic product, the broadest measure of goods and services