Vital Statistics:
| Last | Change | Percent | |
| S&P Futures | 1680.0 | 10.9 | 0.65% |
| Eurostoxx Index | 2843.9 | 45.6 | 1.63% |
| Oil (WTI) | 107.4 | -2.1 | -1.96% |
| LIBOR | 0.256 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 81.91 | 0.119 | 0.15% |
| 10 Year Govt Bond Yield | 2.96% | 0.05% | |
| Current Coupon Ginnie Mae TBA | 103.2 | -0.3 | |
| Current Coupon Fannie Mae TBA | 102.6 | -0.1 | |
| RPX Composite Real Estate Index | 200.7 | -0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.56 |
Markets are higher on the possibility of a peaceful resolution to the Syrian crisis. Overnight, Syria has accepted a Russian framework of surrendering chemical weapons to international authorities. This has sent oil down and stock index futures up. Bonds and MBS are weaker
The NFIB Small Business Optimism Index came in at 94, a touch weaker than expected. Interestingly, the plans to increase employment increased 7 percentage points to a net 16%, however, earnings trends fell 13 points to -35%. So profitability is falling, but companies plan to increase headcount anyway? Surprising result. This survey also shows that while things are going well for the big cap S&P 500 names with international exposure, small businesses are still struggling.
Speaking of stock indices and struggling, the Dow Jones Industrial Average is making some changes. Out: Hewlett-Packard, Alcoa, and Bank of America. In: Goldman, Nike, Visa.
Higher interest rates are beginning to dampen people’s expectations for future home price appreciation, according to the latest Fannie Mae Housing Survey. The expected home price appreciation for the next 12 months has fallen to 3.4% in August from 3.9% in May.
The National Association of Homebuilders Improving Markets Index reached a record high in September as a total of 291 metro areas now qualify as improving markets. Here is a map of the improving areas:
Filed under: Morning Report |

Hey Brent, watch ya think, does this support a housing bubble?
http://www.cnbc.com/id/101019905
Thanks!
LikeLike
We aren’t in another housing bubble. Bubbles require a mentality that an asset class is “special” and can never decline in price. We all know now that it can.
We may never see another real estate bubble, but our grandkids might…
LikeLike
OT: AARP lauching a campaign to encourage mothers to “nudge” their kids to enroll in an insurance plan.
http://www.aarp.org/health/affordable-care-act/mommeansit/?intcmp=EDO-RDRCT-MOMMEANSIT-20130909
LikeLike
Fair enough with the self-awareness aspect. But I’ll counter with the belief among stakeholders that they’ll always be a government bailout resulting in never losing one’s equity. Maybe the rate of return might occasionally drop but the principle is always insured.
Bubble reinflated?
LikeLike
Note that you can go to jail now for posting a link so watch what you link to:
http://www.esquire.com/blogs/politics/journalist-agitator-faces-prison-091013
Edit: This is truly nuts:
“In the news release announcing the indictment, the United States attorney’s office explained, “By transferring and posting the hyperlink, Brown caused the data to be made available to other persons online, without the knowledge and authorization of Stratfor and the card holders.” “
LikeLike
Who thinks the Russian option will actually have a detrimental effect on Assad’s ability to wage chemical warfare?
In case your curious, I do not. But, so what.
LikeLike
“Fair enough with the self-awareness aspect. But I’ll counter with the belief among stakeholders that they’ll always be a government bailout resulting in never losing one’s equity. Maybe the rate of return might occasionally drop but the principle is always insured.
Bubble reinflated?”
No, because the lenders won’t play along…
LikeLike
The memory of the most recent hunts for villains and scapegoats in the mortgage meltdown is too recent.
LikeLike
As we get closer to the debt ceiling showdown, the framing is shifting:
http://www.washingtonpost.com/blogs/post-partisan/wp/2013/09/10/on-the-road-to-default/
Now we see the actual numbers and what the tradeoffs are. To my mind, this benefits the Republican position in the run up argument that it really is a fight over spending.
LikeLike
I don’t get your point on the debt ceiling showdown jnc. Isn’t it always about spending? That’s what a budget is for…………..allocating money to pay the bills.
Considering R’s won the sequester fight I doubt there’s much appetite for more spending cuts do you? Unless we want to unleash another grand bargain repeat performance which has virtually no chance of passing now, I don’t see the point in holding up the payment of bills due. I think that harms Republicans right now.
LikeLike
He’s being punked like a prison bi…, er, wife.
@philipaklein: RT @AFP: BREAKING: Chemical weapons checks in Syria can go ahead if US renounces use of force: Putin
LikeLike
“lmsinca, on September 10, 2013 at 11:41 am said:
I don’t get your point on the debt ceiling showdown jnc. Isn’t it always about spending? That’s what a budget is for…………..allocating money to pay the bills. ”
No, Democrats have been desperately trying to frame this as a debt default, not a budget fight over spending priorities. Hence the arguments about not negotiating over the debt ceiling.
I.e. all the blather about terrorism, hostage taking, and ransoms.
LikeLike
“Considering R’s won the sequester fight I doubt there’s much appetite for more spending cuts do you? ”
I agree. And this is borne out by the new R proposal per Greg Sargent for a clean CR at FY2013 levels. Some of us predicted that months ago.
LikeLike
Whew!
Heitkamp: ‘We’re Not Trusting Assad, We’re Trusting the Russians’ on Syria
http://freebeacon.com/heitkamp-were-not-trusting-assad-were-trusting-the-russians-on-syria/
Because Putin is nothing if not honest.
LikeLike
Tweet of the Day!
@BenK84: Putin doesn’t take a dump on Obama’s chest without a plan.
LikeLike
Good sign for the effort to recall the CO gun grabbers?
@amyewalter: CO Recall: Turn-out model in Co. Springs district shows R’s w/ “super voter” advantage. http://t.co/TzFFy8I7A7
LikeLike