Afternoon Note
Pope Francis has delivered his historic speech to a joint meeting of Congress. He is the first pontiff to address Congress. In his remarks, he appealed to the US to use its might to help heal the world’s “open wounds” caused by greed, hate, poverty and pollution. The Pope also called for an end to the death penalty.
The markets needs a prayer from the Pope to stem losses as all major indices are deeply in the red, albeit off the lows, but in correction territory. Since the Fed and Janet Yellen delivered the no hike in interest rates decision a few days ago, the S&P is down about 3.8%, copper is down 6.0% and oil 4.5%. Ouch.
Let’s hope Yellen’s comments tonight at a press conference regarding inflation and monetary policy will help turn this around and not cause further decline. Maybe she can say something to help the Biotech’s, which are close to bear market territory from the July high and are still reeling from Hillary Clinton’s comments.
Global concerns continue to mount as plunging commodity prices take a toll on yet another US company. Caterpillar cut its 2015 revenue forecast by $1b and expects 2016 to decline to approximately $48 billion. This marks the company’s first four-year drop in sales in its 90 year history. And if things don’t get better, the 5000 layoffs announced through 2016 may actually grow to 10,000 by 2018.
Weak commodities coupled with a strong dollar is impacting US Manufacturing. This is showing up in a decrease in orders for durable goods, which fell 2% in August compared to the increase in July of 1.9%.
And, Taiwan and Norway join the parade of countries to lower interest rates.
On the bright side, new-home sales were up a 5.7% in August to a seasonally adjusted annual rate of 552,000. It was the fastest pace in over 7 years. And this is after jumping a whopping 12% in July, and is up 22% in the past year. Employment and smaller price increases for new houses is lifting sales and this bodes well for the economy especially in construction, building materials, landscaping and related services.
Let’s see what Yellen has to say tonight.
Comments |
she is like the troll that lives under the bridge in regard to reality! Andy Stone on 9/24/2015 2:53:10 PM |
Mrs. Clinton is the person who destroyed the U.S. inoculation business. So, I guess that makes her an expert on pharmaceuticals. Al M. on 9/24/2015 5:19:11 PM |
I saw a very appropriate T shirt: "Hillary for prison in 2016" paul meyerhoff on 9/24/2015 9:47:37 PM |
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