Once again the equity indexes are up pre-market as has been true for days–and each day equities sell off once the regular session opens. Certainly there are plenty of reasons to sell-not the least of which is tax loss selling and I suspect there is plenty of that going on. If tax loss selling is a major contributor to the losses we should see an end soon–maybe even get some bounces.
Interest rates (the 10 year treasury) are trading around 3.87% this morning down a basis point or two from yesterdays close.
In minutes we get the weekly initial jobless claims number and while in the past this has been a number totally overlooked by everyone that is not the case anymore–everyone is searching for weakness in economic data and I think that the jobs numbers are some of the most important out there–it is hard to imagine a very soft economy until we see some weaker job numbers. We’ll see what we get in 15 minutes.
Yesterday we got weakness in pending home sales – this is another economic sign I think is important, but thus far the fall is sales has not translated to much lower pricing. Certainly there are pockets of price weakness, but many areas are flat to off a few percentages. Inventories remain tight in many areas–some areas have nothing for sale, thus prices have remained stable. We need to see some more weakness here. The Fed is watching.