(As of 7:15 am pacific)
What do you do when an
economic report doesn’t reflect reality, such as the durable goods report? Analysts and reporting agencies are reporting
this very differently this morning. It
was up 4.2%, a very strong showing, but down .4%, its worst showing since last
November after stripping out the volatile transportation sector. Airplane orders were up 54%, while autos were
up 13%. All else looked pretty weak. I would say either scrap the report or revamp
it, without airplane orders. The markets
seem a bit confused as well, starting with a mildly negative reaction, but
trying to push forward after a couple of down days. Oil is up slightly, while gold is seeing some
profit taking and a small loss. The
dollar is generally up and mortgage interest rates are drifting back down to
historically low levels. I would say
that the market, although devoid of many traders as the last couple of weeks of
summer wind down, will solidify today and show more strength as the day wears
on.
