US Business Investment Falls On Economic ‘Headwinds’
$DIA, $SPY, $QQQ, $VXX
A gauge of US business investment plans fell in August, as the number of Americans filing new applications for jobless benefits rose last week, signs that global economic headwinds impeded US growth.
Other economic data released Thursday showed new home sales rose in August to the highest mark since early Y 2008.
The US Commerce Department said investment in capital goods excluding military wares and aircraft, a closely watched proxy for business spending plans, dropped 0.2% last month, a bigger fall than analysts polled expected.
The August decline followed a gain in July that was the largest in over a year and which boosted optimism that many American companies were not fazed by weak overseas markets.
The recent trend in orders gives a signal for some economic growth in Q-3 after business investment on equipment fell in the April-June frame.
Durable goods overall fell 2.0% in August, in line with forecasts and held back by a sharp decline in orders for civilian aircraft. Ex-transportation, orders were flat.
A report from the US Labor Department showed initial claims for state unemployment benefits rose by 3,000 to a seasonally adjusted 267,000 for the week ended 19 September.
The health of the US labor market, which is critical for the Fed’s plans to lift interest rates.
The 4-wk MA of jobless claims fell by 750 to 271,750, which was close to its lowest level since Y 2000 suggesting the job market continues to strengthen.
Job growth over the last year helped the nation’s housing market, which took a big hit in the Ys 2007-09 recession.
New home sales in August rose 5.7% to an annual pace of 552,000. The gain was larger than analysts had expected and came on the back of a strong revision in the pace of sales during July.
US major market stock indexes fell Thursday for the 3rd day running.
DJIA-78.57 at 16201.32, NAS 100 -18.27 at 4734.47, S&P 500 -6.51 at 1932.25
Volume: above average with about 1-B/shares changing hands on the NYSE
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- DJIA -9.0% YTD
HeffX-LTN Analysis for DIA: | Overall | Short | Intermediate | Long |
Bearish (-0.37) | Bearish (-0.44) | Bearish (-0.44) | Neutral (-0.22) |
HeffX-LTN Analysis for SPY: | Overall | Short | Intermediate | Long |
Bearish (-0.48) | Bearish (-0.33) | Very Bearish (-0.56) | Very Bearish (-0.53) |
HeffX-LTN Analysis for QQQ: | Overall | Short | Intermediate | Long |
Neutral (-0.24) | Neutral (-0.11) | Bearish (-0.35) | Bearish (-0.25) |
HeffX-LTN Analysis for VXX: | Overall | Short | Intermediate | Long |
Neutral (0.22) | Neutral (-0.12) | Bullish (0.35) | Bullish (0.43) |
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HeffX-LTN
Paul Ebeling
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