Home sales continued their recovery in July, up roughly 4% versus June and 11% from March’s low point after four straight monthly increases…

… but still below the long-term average - with overall sales activity struggling since the pandemic.

While positive, higher sales will need to chew through existing inventory before having a material impact on prices…

… which remain under pressure…

… as the gap between new listings and sales activity highlights the persistent market imbalance in recent years.

Manufacturing sales of ~$68B increased 0.3% M/M, coming up just shy of estimates for a 0.4% gain. June marked the first positive reading in five months - thanks to a recovery in petroleum (+12%) and food (+2.5%) sales.

Inventory levels held steady, as a 0.5% decline in raw materials offset a 0.7% jump in finished goods…

… which in conjunction with higher unfilled orders points to the cooling effect the trade war is having on supply chains.

Despite the disruption, conditions seem to be stabilizing for now - with wholesale sales gaining 0.7% M/M, most of which was volume-driven.

After a couple days of grounded flights and a lot of back and forth, Air Canada (AC) plans to resume operations Monday after striking employees were ordered back to work.

If things go off without a hitch, the only turbulence Air Canada still needs to contend with is the slowdown in its U.S. transborder segment…

… but if the labour dispute drags on, uncertainty could translate into lower passenger load factors - hurting AC’s flight economics… let’s see.

Bausch Health (BHC) gained 11% Friday on news that Paulson Capital cleared out activist investor Carl Icahn’s full stake, following a drawn out battle for control that weighed on the stock alongside its leverage profile…

… which prompted bankruptcy rumours and a >50% drawdown in 2022 that BHC hasn’t recovered from. With an accounting scandal that pre-dated Icahn’s position leaving a bad taste, the company will need more for a sustainable re-rate.

Bird Construction (BDT) extended it’s post-Q2 fall, down nearly 20% since the print - which came with a continued deceleration in revenue driven by a slowdown in the buildings and industrial segment…

… that management expects to rebound somewhat through the remainder of the year, as uncertainty continues to influence decision making. The sell-off has brought BDT back to its ten-year average EBITDA multiple…

… but the company looks a lot better than it has in the past, with a record backlog supporting a long runway for revenue growth…

… that should come at better economics, with EBITDA margins expanding towards management’s 8% 2027 target.

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