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Mid-Day Recap: Data Disappoints. Stocks Weaker for Third Straight Session
Weak orders for durable goods and a soft advance in new home sales have contributed to a lackluster performance in equity markets today. While a boost to consumer sentiment was able to help stocks recovery from a disappointing open, the gains were temporary.rnrnAs of 1:00pm, all three indexes appeared to be ending the week on a low note. The NASDAQ is down 0.94% to 2,087, followed by a 0.82% decline in the S&P 500 to 1,042 and a 0.58% slide in the Dow to 9,652.
New Home Sales +0.7% in August. Regional Results Mixed
New home sales increased for the fifth straight month in August, but the 0.7% gain didn’t match the median estimate of +1.6%. The annual pace of sales is now 429,000, or 3.4% below the August 2008 rate.rnrnNot only were sales lower than expected, they were also so lopsided that only one of the four areas even experienced growth. Sales in the West jumped 12.1%, but sales fell 16.3% in Northeast and 5.8% in the Midwest, while activity in the South was flat.
Volatile Durable Goods Data Sends Equities South
New orders for durable goods sent stocks into retreat on Friday as the report tumbled well beyond expectations in August. But analyst reactions to the report were mixed as the headline was mostly a reflection of the overweighted transportation sector, which plummeted in August do to the volatile aircraft component.rnrnrnNew orders fell 2.4% in August, reversing course from the 4.8% gain in July and failing to match forecasts for a 1.0% gain. The transportation sector was the key factor as it fell 9.3% compared to July, mostly owing to the 29.9% plunge in aircraft orders. When transportation is excluded, orders
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