Just hours away from a deadline to reach the deal on border funding, President Trump warned of a “very long” shutdown if Senate Democrats did not vote for border security. House Republicans sought to meet his demands last night and added $5 Billion of funding to his project, however, Senators from both sides have indicated that the modified legislation won’t pass the chamber. With renewed risk of a government shutdown, stocks slid throughout yesterday but it pared the drop this morning. Treasuries and the dollar climbed while WTI crude extended its losses toward $45 per barrel.
We have a very busy economic calendar today. Third quarter GDP increased an annual rate of 3.40% vs. estimate of 3.50%, a 0.10% decrease from the second quarter reading of 3.50%. Personal Consumption also came in just shy of prior reading of 3.60% at 3.50%. Durable Goods Orders rebounded at 0.80% from -4.30% prior but still missed expectation of 1.60%. Personal Income for November printed 0.20% vs. consensus of 0.30% and prior reading of 0.50%. Personal Spending also declined to 0.40% from an upwardly revised prior of 0.80%. On the contrary, US Consumer Sentiment unexpectedly rose to 98.30 from 97.50 prior vs. 97.40 estimate.
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Just hours away from a deadline to reach the deal on border funding, President Trump warned of a “very long” shutdown if Senate Democrats did not vote for border security. House Republicans sought to meet his demands last night and added $5 Billion of funding to his project, however, Senators from both sides have indicated that the modified legislation won’t pass the chamber. With renewed risk of a government shutdown, stocks slid throughout yesterday but it pared the drop this morning. Treasuries and the dollar climbed while WTI crude extended its losses toward $45 per barrel.
We have a very busy economic calendar today. Third quarter GDP increased an annual rate of 3.40% vs. estimate of 3.50%, a 0.10% decrease from the second quarter reading of 3.50%. Personal Consumption also came in just shy of prior reading of 3.60% at 3.50%. Durable Goods Orders rebounded at 0.80% from -4.30% prior but still missed expectation of 1.60%. Personal Income for November printed 0.20% vs. consensus of 0.30% and prior reading of 0.50%. Personal Spending also declined to 0.40% from an upwardly revised prior of 0.80%. On the contrary, US Consumer Sentiment unexpectedly rose to 98.30 from 97.50 prior vs. 97.40 estimate.
The curve has bull-flattened with UST 10-Year yield down 1.99 bps.
Have A Lovely Weekend!