“Do more of what works and less of what doesn’t”. — unknown

1. U.S. Home Prices Posted First Annual Decline Since 2012 in April — Home prices posted their first year-over-year price decline in 11 years in April, as higher mortgage rates made home purchases more expensive for buyers. The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the nation, fell 0.2% in April, compared with a 0.7% annual growth rate the prior month. The annual decline was the first for the index since April 2012. The average rate for a 30-year fixed mortgage was 6.67% in the week ended June 22, up from 5.81% a year earlier, according to Freddie Mac.
2. First-quarter economic growth was actually 2%, up from 1.3% first reported in major GDP revision — The U.S. economy showed much stronger-than-expected growth in the first quarter than previously thought, according to a big upward revision Thursday from the Commerce Department. Gross domestic product increased at a 2% annualized pace for the January-through-March period, up from the previous estimate of 1.3% and ahead of the 1.4% Dow Jones consensus forecast. This was the third and final estimate for Q1 GDP. The growth rate was 2.6% in the fourth quarter.
The upward revision helps undercut widespread expectations that the U.S. is heading toward a recession. A separate economic report released Thursday showed layoffs running well below expectations, indicating that labor market strength has held up even in the face of the Federal Reserve’s 10 interest rate hikes totaling 5 percentage points.
3. Polestar is the latest EV maker to announce a move to Tesla’s North American charging standard — new Polestar vehicles sold in North America will come standard with the Tesla-designed North American Charging Standard, or NACS, plug starting in 2025. Owners of existing Polestars will be able to charge at Tesla’s Supercharger stations with an adapter starting in mid-2024. Polestar’s deal follows an identical one announced by corporate sibling Volvo Cars on Tuesday. Ford Motor , General Motor and Rivian have also announced similar deals with Tesla in recent weeks.
4. Consumer Spending Streak Extended in May, Inflation Cooled — consumer spending, the primary driver of economic growth, rose 0.1% in May from the prior month, the Commerce Department said on Friday, compared with a revised 0.6% increase in April. Americans spent more on services such as healthcare and air travel, while spending on goods such as autos declined. Spending was flat in May when adjusted for inflation. The Fed’s preferred gauge of consumer prices, the personal-consumption expenditures price index, rose 3.8% from a year earlier, down from 4.3% in April. So-called core prices, which exclude volatile food and energy categories, rose 4.6% in May from a year earlier, down slightly from 4.7% in April. Economists see core inflation as a better predictor of future inflation than overall inflation. From the prior month, overall prices increased 0.1%, easing from a 0.4% rise in April.

The week ahead — Economic data from Econoday.com: