| Last | Change | Percent | |
| S&P Futures | 1395.9 | -4.1 | -0.29% |
| Eurostoxx Index | 2417.7 | -11.4 | -0.47% |
| Oil (WTI) | 95.89 | -0.4 | -0.39% |
| LIBOR | 0.425 | -0.002 | -0.47% |
| US Dollar Index (DXY) | 81.56 | 0.205 | 0.25% |
| 10 Year Govt Bond Yield | 1.63% | -0.04% | |
| RPX Composite Real Estate Index | 192.1 | 0.1 |
Markets are off after a disappointing durable goods report. Between the durable goods report and the cap good report, it showed companies pulled back from making capital investment in July. This put a bid under bonds and the 10 year is now pushing 1.6% after topping 1.8% earlier this week. MBS are up 1/4 of a point as well.
Why does the economic recover not feel like a recovery? One big reason is that incomes are still falling - in fact they have fallen more since the recovery began than they did during the recession. Given the move in the median house price, the median house price to median income ratio has spiked to 3.7x, implying housing is overvalued. FWIW, I am skeptical of NAR's median house price numbers, which supposedly rose 22% to 189.6 from 154.6 in Jan. Perhaps the lack of distressed sales has caused the median price to shoot up.
Bill Gross said this morning that QEIII is "almost a done deal." No update on the status of the cult of equities' demise, though.
Republicans want to study the implications of returning to the gold standard. This is undoubtedly aimed at libertarians who like Ron Paul and may vote for Gary Johnson. Needless to say, the Nobel Krug Man does not approve.
Chart: Median income:
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