Durable Goods Orders
Tomorrow has a morning and afternoon event that we will be watching. First will be September’s Durable Goods Orders at 8:30 AM ET. It gives us an important measurement of manufacturing sector strength by tracking orders at U.S. factories for big-ticket items, or products that are expected to last three or more years. Analysts are currently calling for a 0.8% decline in new orders for products such as airplanes, appliances and electronics. If we see an increase in orders, mortgage rates will probably rise as bond prices fall. On the other hand, a larger decline should be good news for the bond market and mortgage rates. This data can be quite volatile from month to month and is difficult to forecast. Therefore, a small variance in orders either way, likely will have little effect on tomorrow’s bond trading or mortgage pricing.