Mixed Close for Building and National Markets

The month and June quarter ended mixed as markets reacted to the expected quarter point hike by the Federal Reserve. The ninth increase in a year left Wall Street hoping for an easing in the hikes in the future, but there was no nod in that direction. "They are going to keep going," said David Jones, head of DMJ Advisors, an economic consulting firm. "There will be an August move because there is no hint at this meeting that they will pause." In addition, May income growth and spending were both weak. Record oil prices above $60 a barrel further pressured the Street.

In tandem with the major markets, the Giants/HousingZone.com indices were mixed at the close of our session ended June 30, 2005, with the Builders' Index posting strong gains and the Product Manufacturing Index heading south. The Builders' Index increased 7.09 percent to close at 1332.13, and the Product Manufacturers' Index slid 3.96 percent to end at 972.74. Declining issues outpaced advancing issues at a count of 8-to-6. In the Builders' Index, advancing issues tore past declining issues by an 11 to 1 margin. For the complete list of the Builders' and Building Product Manufacturers' indices, visit http://www.housingzone.com/economics.