Markets are very quiet – very quiet. Guess markets are looking for moving stimulus. 10 year treasury yield down 3 basis points with equity markets essentially flat.
Yesterday consumer debt numbers were released and they are a bit scary. Consumer debt numbers cut both ways – stimulus initially and then later if we enter a true recession of magnitude ‘bad debt’ appears causing severe write offs. With credit card balances taking there biggest jump in over 20 years last quarter – up 15% year on year, we will be watching for write-offs as a ‘signal’ to economic stress.
Tomorrow the new jobless claims will be released with 225,000 expected versus the same number last week. If this economy is slowing we need to see this number higher (not to wish bad luck on employed folks)–with all the high profile layoffs in tech you would think we would see this number increasing–we’ll see.
Thursday and Friday we have building permits and housing starts being released as well as existing home sales being released. In Minnesota I believe building permits were off 50% or so in October—this will eventually ‘feed into’ employment (or lack there of).
Today I will not be in the office in the morning so likely will do nothing as far as buying/selling, although I still have the Spire 5.90% perpetual (SR-A) on my buy list. I will need to see a little lower price after the jump of 59 cents yesterday–outrunning a limit order I had in place.