Registered Investment Adviser Caleb Lawrence
Leaked details of Trumps much heralded tax plan managed to stimulate the markets in late trade as they enter the final hour with modest gains despite uneven economic data.
Durable Goods orders advanced 17% in August on a big jump in transportation orders. The proxy for business spending non-defense capital goods ex-aircraft gained a respectable .9%, a 3rd decent showing in the last 4-months.
Mortgage activity slipped .5% last week as per the Mortgage Bankers Association or MBA. Refi’s fell 3.5% but purchase apps advanced 2.8%. The 30-year contract rate for a jumbo loan increased to 4.06%.
Data for the real estate and construction sectors continues to come in soft and is well on its way to becoming a negative trend. The August Pending Home Sales Index fell 2.6%. A second consecutive decline and the 5th drop in the last 6-months that pushed the year ago figure to -2.6%. Some blamed the decline on the hurricanes but I think it is still just a little early for that excuse, the western region recorded a 1% decline.