Photo: Nokia’s Official Flickr
Markets lost their early rally, but hung on at the end of the day.First the scoreboard:
Dow: 13,103, +26.3, +0.2 per cent
S&P 500: 1,412, +4.2, +0.3 per cent
NASDAQ: 2,986, +4.4, +0.1 per cent
And now the top stories:
- Economists paid particularly close attention to today’s durable goods orders report. In September, the headline number jumped 9.9 per cent, which was well ahead of the 7.5 per cent gain expected by economists. This was largely driven by a big spike in aircraft orders. But even excluding transportation, orders grew 2.0 per cent versus expectations for a 0.9 per cent gain. Here’s What 8 Economic Cycle Theories Say About The World Today >
- If there was one disappointing component of the durable goods report, it was core capex orders (i.e. nondefense capital goods excluding aircraft), which was flat versus the expectation for 0.2 per cent growth. Core capex orders is David Rosenberg’s favourite recession indicator. So the miss is not welcome news.
- Today’s initial jobless claims report was nothing to get too excited about. Claims fell to 369k, which was marginally better than the 370k economists were expecting. However, last week’s claims were revised up to 392k from 388k.
- Pending homes sales also missed expectations, climbing just 0.3 per cent. This was far short of the expectation for a 2.5 per cent increase. Why Neither Presidential Candidate Will Touch The Housing Crisis [CHARTS] >
- Rounding out the set of disappointing economic data was the Kansas City Fed Manufacturing Index, which plunged to -4. This was a 3-year low. Economists were expecting a reading of +5.
- Shares of Best Buy got slammed. Yesterday afternoon, the company warned that its Q3 earnings would fall short of expections. With the announcement, company announced a major management shake-up.
- Late in the trading session, Bloomberg reported that Apple was developing an Internet radio service. The real loser in this announcement was internet radio company Pandora, which completely collapsed.
- Tech giants Apple and Amazon.com will be announcing their Q3 earnings after the closing bell. We’ll be covering the releases Live at BusinessInsider.com.
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