Wednesday, May 28, 2008
Durable Goods came in down .5% which was slightly less than the .7% drop than anticipated. What has killed the bond today is that if you exclude transportation, it came in up a whopping 2.5%. This may be a signal that businesses feel that it is time to stock up for better business. Bonds have taken a beating and are bouncing off the trend line. If we drop past this, we can look for rates to go up more. Here is where what is expected ends... Stocks are down, and oil is hovering around $129 (remember it was $135 recently). It looks to me that, investors are stuffing their mattresses for now. If you have clients waiting on better rates, it may be some time for that. Tomorrow the GDP and unemployment numbers come out. Fingers crossed.
Karl Menzer
435-849-0212
