|10 year government bond yield||3.08%|
|30 year fixed rate mortgage||4.93%|
Stocks are lower again this morning as overseas markets remain under pressure. Bonds and MBS are up, with the 10 year trading below 3.1%.
Initial Jobless Claims ticked up slightly to 215,000 last week. The labor market remains strong and employers are hanging on to their employees.
Durable Goods orders rose 0.8% last month (a strong reading) however that was driven largely by aircraft orders which can be lumpy. Ex-transportation they rose 0.1%. Capital Goods orders (a proxy for capital investment / business expansion) were down 0.1%.
Retail inventories rose 0.1% while wholesale inventories rose 0.3%. We will get a read on the back-to-school shopping season when the retailers begin reporting earnings next month. Note Amazon reported last night and their earnings beat expectations, but their guidance (and revenues) was terrible. The stock is down about 9% pre-open. Part of the miss in guidance is due to the decision Amazon made to raise warehouse worker wages, but the revenue guidance is something to worry about.
Two of the other sled-dogs in the FAANG index are down this morning – Google and Netflix. While it is probably too early to start reaching for defensives like PG or MO, the leaders are hitting a rough patch.
Pending home sales rose 0.5% in September, according to NAR. Don’t get too excited; they were down 1% YOY, but these days any positive reading in the housing sector is a win.