Three Things (7/8)

1) U.S. trade deficit narrows: The U.S. trade deficit shrank 8.2% in May as imports slowed. The change results from lower spending and higher exports from energy outlays. The decline was primarily driven by goods imports, while service imports actually increased by $700 million. The trade imbalance is still 30% higher than one year ago.

Titan's Takeaway: While the recent rise in U.S exports was more out of necessity because of a global energy crisis, we wonder if this could be part of a policy shift to domestic production and a sustained emphasis on exports.

2) Amazon partners with Grubhub: The global e-commerce giant partnered with the food delivery service by allowing Amazon Prime customers one year of free delivery through Grubhub+. Amazon will receive a 2% stake in Grubhub and potentially an additional 13% if the partnership is successful.

Titan's Takeaway: If Grubhub is willing to give up as much as 15% to Amazon, they must clearly see themselves as the laggard in the race for market share among Uber and DoorDash in the food delivery space.

3) Mortgage rates plummet: Home buyers finally got a bit of a reprieve as mortgage rates plummeted at their fastest pace since 2008. The average 30-year loan fell from 5.7% last week to 5.3%. Nevertheless, home prices remain stubbornly high, in spite of a Fed intent on raising rates aggressively.

Titan's Takeaway: Even with aggressive rate hikes, the housing market is still the most expensive it's been since the 1980s. For the first-time home buyer, dreams of a white picket fence may still be locked away.