Morning Report: NFIB small business optimism continues streak

Vital Statistics:

 

Last Change
S&P futures 2746 18
Eurostoxx index 364 2.1
Oil (WTI) 58.73 -1.25
10 year government bond yield 3.17%
30 year fixed rate mortgage 4.98%

 

Stocks are rebounding after yesterday’s sell-off. Bonds and MBS are up small.

 

Slow news day as bond investors return from a long weekend. Neel Kashkari speaks at 10:00 am EST.

 

Small Business Optimism continued to hit record levels going back to the early 70s. The NFIB Small Business Optimism Index rose to 107.3 in October. Job creation was strong, with small business adding about .15 workers. 59% of businesses reported spending on expansion, while reports of sales and new orders continued their solid showing. Inflation remains on a slight upward path, while not exhibiting any rapid rises. As commodities fall (oil especially) the big source of inflation remains transportation (driven by labor costs) and anything tariff-related.

 

NFIB

Housing affordability dropped again, according to the NAHB / Wells Fargo Housing Opportunity Index. We are back at levels last seen around 2004 and 2009.

 

Lower affordability means that people are spending on their home improvement projects. The Despot reported earnings that easily topped analyst expectations. I guess when it is hard to move up, people fix up.

 

 

Author: Brent Nyitray

Why do you need new bands? Everyone knows rock attained perfection in 1974. It's a scientific fact. - Homer Simpson

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