Friday, October 01, 2010

Market comments for Oct. 1st (UPDATE)

Personal Income data and Personal Spending data have been released this morning. For Personal Income the data came in at +0.5% while expectations were for +0.3%. For Personal Spending, the data came in at +0.4%, while expectations were for +0.3%. Both of these data are backwards looking as they are for August, not September.

Univ. of Michigan Consumer Sentiment for September comes out after the market is open at 6:55am PST. Also at that time to be released is Construction Spending, ISM Index. Auto Sales and Truck Sales data will be released at 11:00am PST. All this data will be updated later today as they become available.

So far that's a nice jump in Personal Income and Spending. Futures are pointed up with the Dow up 55 points and the S&P up 6 points.

UPDATE: 7:05am PST

The ISM index came in at 54.4, which was lower than the expected 55.0 number. This is a September number. Construction Spending was up +0.4%, which is much more than the -0.7% expected number. The University of Michigan Consumer Sentiment Final number for Sept. came in better than expected at 68.2 vs. an expected 67.0 reading. The ISM index is more optimistic than what people are feeling. The growth is not showing real growth enough to have a recovery but may not be as bad to cause a double dip.

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Anonymous KB said...

This is a terrific blog. Very informative and insightful. Particularly liked the 10yr vs, DOW chart, as you are right, they have tended to move in tandem...but now are massively diverging. Either the stock market is right and is foretelling a more robust economy going forward..or the bond market is right, and asset prices are soon to deflate once again.

I'll take the bond market any day.

Thanks Charles for your great work!

12:46 PM  

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