There are lots of economic data out today.  Durable goods for September increased 2.2%, while August was revised up from 1.7% to 2.0%.  Excluding transportation, orders rose 0.7%, ahead of the estimate of +0.5%, and August was revised higher to 0.7% from 0.2%.  Business spending is on the move, as new orders for non-defense capital goods, excluding aircraft, rose 1.3% up for the third consecutive month. New orders for non-defense aircraft and parts jumped a whopping 31.5%. Overall, the data suggest that we are can expect 3^rd quarter GDP to be stronger.

New Orders:

• Fabricated metal products +1.7%
• Computer and electronic products +1.6%
• Transportation equipment +5.5
• Machinery  -0.2%

New home sales (contract signed) for September came in at 667,000 annualized against Wall Street’s consensus of 554,000, climbing 18.9% month to month and 22.4% from a year earlier.  This is the best result in ten years. Supply continues to be constrained with new home supply falling to 5 months from 6 months in August. The median sales price rose to $319,700 up 1.6%, while the average sales price increased to $385,200 up 5.2%. 

Month over month increase:

• Northeast +33.3%
• South +25.8
• Midwest 10.6%
• West 2.9%

On the energy front, oil is down after the EIA inventory report showed an unexpected increase of 856,000 barrels for the week of October 20.  Analyst had forecasted a decline of 2.6 million barrels. However, gasoline inventory fell 5.5 million barrels compared to an expectation of a 17,000 barrel decline. Distillate supplies, which include heating oil and diesel, decreased by 5.2 million barrels, versus a forecast for an 860,000 decrease.  To add, U.S. refineries increased production last week.  WTI is currently trading down $0.32 to $52.14.

At midday, decliners led advancers 1460/483 on the NYSE and 1996/726 on the Nasdaq. The sell-off is broad-based after mixed earnings results, several days of record highs, and some jitters over who will be the next Fed Chair.  All 11 sectors of the S&P500 are down, and even stocks that posted better than expected results are turning lower. 

Let’s stay on the sidelines for the rest of the day.