October 4, 2018
Factory orders did jump very sharply in August but the strength was narrowly confined to aircraft and vehicles. Other readings, including for capital goods, were in fact soft. Hurricane Florence struck the Carolinas hard but had very little impact at all on jobless claims as it will likely have very little impact on tomorrow's employment report where another month of strong payroll growth is the consensus.
The sell-off in the bond market extended into today's session, at least for long-dated maturities. The 10-year Treasury yield, after surging 10 basis points yesterday, rose another 3 points to 3.19 percent. The upward move in interest rates risks slowing economic growth and is not a positive for the stock market. The Dow ended the week's strong run with a 0.8 percent loss to 26,627.
Unlike stocks and bonds, this week's moves in the dollar have been limited with the dollar index edging 0.2 percent lower to 95.85. Oil remains firm near $76 with gold holding just over $1,200.