July Capex Measures Beat Estimates

After the Mortgage Bankers Association announced early this morning that new Mortgage Applications fell 6.5% for the week ending August 21st, the Census Bureau reported that Durable Goods Orders in July rose by 11.2% and soundly beat estimates looking for a 4.8% jump. Without Transportation, orders grew 2.4%, also beating expectations, while June’s 3.6% boost was revised to a 4% rise. For “core” Capital Goods, last month’s 1.9% growth beat the 1.7% estimate while June’s 3.4% was revised to 4.3%. This is the Census Bureau’s preliminary report and final results won’t be known for several days. Still, a significant demonstration of much needed revitalization as reopening efforts continue.

The Treasury market, in the face of a lot of supply coming to market today, is experiencing an early morning sell-off as the Ten-Year’s quarter-point slide has pushed its yield up to around 71 basis points while the Long Bond has drifted up to 1.43%. Hurricane concerns in the Gulf of Mexico have helped bolster crude prices and oil is little changed so far at just over $43. Gold, meanwhile, has slipped about $22 and is trading around $1,905.