Markets are higher this morning in spite of some disappointing spending and income numbers. Bonds and MBS are flat.
Personal Income rose 0.1% in September and personal spending rose 0.1% as well. Both numbers were below the 0.2% Street estimates. The core personal consumption expenditure index rose 0.1% in September and is up 1.3% year-over-year. The savings rate increased to 4.8% from 4.7%, a sign that consumers are still de-leveraging. Economic optimists are going to point to the turmoil in the financial markets as the reason for the weak numbers. Economic pessimists are worried about entering another recession.
The employment cost index rose 0.6% in the third quarter, in line with expectations. This is an uptick from the June quarter, which was the lowest reading since 1982. On an annual basis, wages and salaries increased 2%. while benefit costs increased 1.8%. The labor market is tight for skilled labor, especially construction.
Pending Home Sales fell 2.3% in September, according to the NAR. Blame low inventory, especially at the lower price points.
The Chicago Purchasing Managers index jumped in October. Production and new orders drove the increase, which is a positive sign for the economy.
Consumer sentiment dipped in October, according the University of Michigan survey.
Congress passed a bipartisan 2 year deal that raises the debt ceiling and eliminates the sequester. This takes any government shutdown worries off the table.
As we approach Halloween weekend, Bankrate takes a look at the states with the highest zombie foreclosures… Needless to say, they are concentrated in the Northeast and the rust belt.
Stock certificates from the tech stocks of yesteryear, inlcuding Computing Tabulating Recording Company (IBM) and The Haloid Company (Xerox).
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