Market Analysis

Bonds are under pressure and the stock market got a big bounce this morning on a report from Germany which showed business confidence there is the strongest in 3 years and on a stronger than expected August Durable Goods report.  Also, yesterday morning after our update was published, August's Leading Indicators came in higher than expected as did August's existing home sales.

In today's economic news, the August Durable Goods report came in down 1.3% which was better than the negative 1.4% projected.  After taking out the volatile transportation component, Durable Goods ex-transportation were up 2% vs expectations for a .6% increase and compared to a revised 2.8% decline in July. In separate news August's New Home Sales came in at an annualized pace of 288,000 which was just under the 291,000 pace analysts had been expecting.  July's annualized New Home Sales were revised upward from 276,000 to 288,000.