Equities are calm this morning (at 5 am central) after a 1% up move yesterday–the S&P500 futures are up 6 points. Of course we know this can turn quickly.
The 10 year treasury yield is up 5 basis points to the 4.05% area–unlike the last time yields hit the 4% mark this time it doesn’t act like it wants to fall back under that mark. Yesterday the industrial capacity index for September was released and it was much stronger than forecast at a +.4% against an expectation of +.1%–the previous reading was -.1%. Once again economic data isn’t matching the narrative of a soft economy. The NAHB home builders index did show a softening with the reading at 38 which was below the forecast of 44 as interest rates are biting into that business.
Today we have the building permits and housing starts numbers released at 7:30 am (central) so we will see how this important sector is fairing–as compared to the softening home builders index.
Yesterday I did nothing at all investment wise. Today I will nibble a little of the Liberty Broadband 7% preferred (LBRDP) as it was knocked down yesterday, once again, to a current yield of 7.83%. This is adding to a long held position.