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Stocks fell yesterday after President Trump cut his G-7 visit short, dashing hopes for breakthroughs on trade. However, Canadian Prime Minister Mark Carney said that Canada and the US are still aiming for a trade deal within 30 days. Meanwhile, results from homebuilder Lennar Corp. (LEN) were mixed.

Trump left due to tensions in the Middle East, with Trump calling for the evacuation of Tehran. We also got a read on retail sales in the US. Retail sales in May dropped 0.9%, the biggest decline this year. This is our first indication that tariffs weighed on spending and could be offering some clues as to why inflation is being held in check despite tariffs.

Spending on restaurants and bars fell by the most since 2023. The Federal Reserve is wrapping up its two days of deliberation on interest rates today. The Fed is widely expected to keep rates on hold for a fourth meeting in a row – and the softer retail sales data is unlikely to alter that trajectory.

As for LEN, profit and the firm’s new orders forecast missed expectations. But that was offset by better-than-feared margins. The housing market has slowed to a crawl in the US, and homebuilders like Lennar haven’t been immune.

The results certainly don’t point to a recovery any time soon. But with the stock down nearly 25% over the past year, it appears the worst is already priced in.

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