We kicked off this morning with the September durable goods
report. The headline figure of +3.7% was ahead of the 2.3%
consensus. However, when excluding the volatile transportation
sector, durable goods fell 0.1% vs. consensus expectations for a
0.5% increase. Additionally, new capital goods orders were weaker
(INDEXNASDAQ:.IXIC) squeezed into positive territory as index
) traded up sharply after reporting better-than-expected earnings.
Amazon actually hit a new all-time high above the $360 level.
However, the strength in tech did not extend widely across
markets as the small-cap
(INDEXRUSSELL:RUT) was down, and many popular high-beta stocks like
) all sold off.
In the near-term, the recent string of mostly mediocre economic
data and mixed earnings data (the strength in select names like the
aforementioned Amazon and Microsoft notwithstanding) may be fueling
expectations that the Fed may further delay the tapering of its
quantitative easing activities, or perhaps even increase them. In a
market that is largely perceived to be mostly liquidity-driven,
data that is weak enough to prevent tapering but strong enough to
indicate mere survival may be an ideal combination for the bulls.
Tomorrow's Financial Outlook
On Monday , we'll have more important economic data coming as we'll
see the September Industrial Production and Capacity Utilization
numbers at9:15 a.m. EDT . Consensus estimates currently stand at
0.4% and 78%, respectively.
At10:00 a.m. , September Pending Home Sales will be reported.
Economists are forecasting a 2.0% month-over-month decrease.
However, the big news will come on the earnings front, with
) reporting its fiscal fourth-quarter results after the close. The
company has already pre-announced solid revenues for the quarter,
so guidance will be key.
Other big names reportingMonday include
(MRK) before the open, and
(STX) after the close.