(KRON) — In today’s installment of Winners & Losers, financial expert Rob Black discusses a rise in the S&P 500, cooling home prices and skyrocketing NFL team values.
Winner: S&P 500 rises slightly to start August
The S&P 500 rose to begin August trading as investors wondered if the market’s comeback has further to run following the best month since 2020.
A better-than-expected manufacturing report helped lift stocks into the green.
Shares of chipmakers like AMD and Nvidia rebounded into positive territory and remained there.
The energy sector was a big drag on the market as oil prices fell.
The Nasdaq’s 12.3% gain last month was its best since April 2020, and Amazon’s July was its best month in 13 years.
Apartment rents have started to taper off after record growth and rose 9.4% in the second quarter of 2022 compared with the same quarter in 2021. It is down from the more than 11% annual increases seen in the previous two quarters.
Apple is issuing bonds to fund stock buybacks and pay dividends. Apple’s long-term credit rating has been upgraded to to Aaa. This is Moody’s highest rating, awarded only to companies with the lowest level of credit risk.
As of June, 61% of Americans — roughly 157 million adults — lived paycheck to paycheck. That’s up from 58% who reported living paycheck to paycheck in May. A year ago, the number of adults who felt stretched too thin was 55%.
Loser: Home prices cooled at a record pace in June
Rising mortgage rates, wide and hot inflation, slowing economy and drop of demand has cause home prices to noticeably slow or cool down.
The annual rate of price appreciation fell two percentage points from 19.3% to 17.3%.
Even when home prices crashed dramatically during the recession of 2007-09, the strongest single-month slowdown was 1.19 percentage points.
25% of major U.S. markets saw growth slow by three percentage points in June, with four decelerating by four or more points in that month alone.
Still, the market would have to see six more months of this kind of deceleration for price growth to return to long-run averages.
Average home values in San Jose have fallen 5.1% in the last two months, the biggest drop of any of the top markets. That chopped $75,000 off the price.
In Seattle, prices are down 3.8% in the past two months, or a $30,000 reduction.
San Francisco, San Diego and Denver round out the top five markets with the biggest price reductions.
Winner: NFL team valuations skyrocket again
If you know anything about the National Football League, you’re probably aware that the best teams are worth billions, which accounts for the players’ values and revenues, stadium value and investment in the team.
The Broncos, whose record-breaking sale to Rob Walton for $4.65 billion is expected to be approved next week.
The big picture: The Cowboys ($7.64 billion) are yet again the world’s most valuable sports franchise, and the average NFL team is worth $4.1 billion, up 18% from last year.
The Dallas Cowboys proved to be one of the best investments ever acquired by Jerry Jones in 1989. He purchased the team at the cost of $140 million and it is now worth $7.6 billion.
The San Francisco 49ers are in fifth place at $5.1 billion. The Raiders are now 15th at $4.1 billion.
The Las Vegas Raiders generated the highest revenue from ticket sales in the NFL this past season.
Wild stat: There are 16 NFL franchises worth at least $4 billion — and just seven across the remaining Big Four (four MLB, three NBA).