The National Association of Homebuilders announced this morning that its Housing Market Index rose in August to 78 from 72. That is the highest that measure has been since 1998. Housing Starts will be released tomorrow and are expected to show continued growth.
Less good new for the Manufacturing sector was also reported today by the New York Fed with the announcement that its Empire Manufacturing Index unexpectedly plunged to 3.7 in August from July’s 17.2. Pre-release estimates were only looking for a slip to 15. Also overnight, we learned that Japan’s Q2 GDP took a 27.8% plunge, the largest such plunge on record.
Treasury bonds have started their day with a modest rally; the Ten-Year’s quarter-point gain has pushed that issue’s yield down to around 67 basis points as the Long Bond’s yield remains just over 1.40%. Crude oil is more or less unchanged at around $42 while gold has rallied around $12 to $1,958. Domestic equities are looking to open in the green.