Housing Starts Disappoint

Investors learned this morning that Housing Starts rose 1.9% in September and that was less than the 3.5% gain that was forecast. August’s plunge of 5.1% was revised to a plunge of 6.7%. Also announced today was a 5.2% rise in new Building Permits that beat estimates of a 3% boost. August’s decline of 0.9% was revised to a slip of 0.5%. Today’s report comes on the heels of yesterday’s announcement that the NAHB Housing Index rose to a new record high of 85.

Treasury bond prices are a little lower this morning as investors cling to prospects of a Congressional agreement on further fiscal stimulus. The deadline imposed by Speaker Pelosi arrives today, but the exact time is unclear. The Ten-Year is yielding around 78 basis points as the Long Bond’s yield has been pushed up to around 1.58%. Crude oil has slipped a bit to $40.68 and gold is little changed at $1,903. Equity indices are looking to open in the green.