Mixed economic data sent the major averages into the final hour with large gains. China agrees to another round of trade talks, but Trump remains as bellicose as ever with respect to trade so will see what happens.
The Treasury International Capital Flows or TIC report came out late yesterday. At a negative 36.5 billion in June foreigners demonstrated a reluctance to finance our deficits for the first time in 11-months, and the trade tariffs haven’t even hit the tape yet. Treasury’s and equites both sold off notably, corporate and agency bonds were popular for the month.
Housing starts missed expectations with a .9% gain in July. Permits snapped a string of declines with a 1.9% advance over the same period. This series, while still strong has weakened materially in the last 3-months.
The Philadelphia Fed regional index missed expectations substantially in August plunging 13.8 points to 11.9 on weakness in new orders and employment. Price data slipped materially but remains high.
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