Tuesday's Scoop: Steady🌤️

Hey friend - make sure to look out for Scoops on CNBC’s Squawk Box this week before market open!

Here’s what you need to know today to inform your work, spending, and investments…

1. Progress toward resolving the national housing shortage has stalled.

2. US manufacturing is making a comeback.

3. New regulations state employers must accommodate abortion and contraception.

Unemployment Rate: 3.8%
^{Still near the lowest rate in 50+ years}

US manufacturing is making a comeback. The Federal Reserve reported US manufacturing output climbed 0.5% after a 1.2% rebound in February. Factory production has been in a recession for over a year as consumers cut back spending on physical stuff. Even though manufacturing only accounts for a tenth of the overall economy, it’s a positive sign for growth.

Employers will have to accommodate abortions and contraception, according to a new rule passed by the US Equal Employment Opportunity Commission (EEOC). The agency that enforces workplace discrimination laws announced a new rule that includes abortion and contraception within the scope of increased protections for pregnant workers from the Pregnant Workers Fairness Act, a recent law passed by Congress with bipartisan support. The law requires employers with more than 15 people to alter job responsibilities or provide time off for pregnant employees. The EEOC received public criticism for not including a religious exemption to the rule and could face legal challenges.

30yr Mortgage Rate: 7.0%
^{That’s up from 6.7% a year ago. (MBA)}
Median Home Price: $384,500
^{That’s up from $364K a year ago. (NAR)}

The optimism for relief to the national housing shortage has faded. After a few months of increased building activity, the Commerce Department reported new home construction starts plunged 15% last month, the worst drop since April 2020. Permits for future construction fell to the lowest level since last July. The National Association of Home Builders also reported that the climbing optimism from contractors stalled last month. Rising inflation has dashed home builders’ confidence that borrowing costs will come down this year and stimulate more home buying. High mortgage costs have kept both buyers and sellers on the sidelines, shrinking the available supply of homes on the market.

The Market: ⬇️ -0.2%
S&P 500: 5,051.41
1Mo: -2% | 1Yr: +22% | 5Yr: +72%

The market wavered lower on Tuesday as investors pushed interest rates higher. Low unemployment, high consumer spending, and rising inflation are a recipe for policymakers to keep borrowing rates high for longer to slow inflation.