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Highlights
A sweep of positives are lifting the index of leading economic indicators which is up a very sharp 0.6 percent in September. The stock market is a positive in the month as is the report's component for credit conditions. A separate reading on interest rates remains a major contributor though its methodology, which tracks the spread between long and short rates, may need a tune up, as the component's contribution to the index is waning, not increasing, as long rates are moving lower. Low mortgage rates right now are a major factor behind acceleration in the housing sector with building permits the largest contributor in September.
A negative in the report is a decline in the ISM new orders component with a small drag from unemployment claims another negative. Consumer expectations are also a negative for September but they look to be a big positive for the next report given last week's jump in the mid-month consumer sentiment report, improvement confirmed by this morning's Bloomberg consumer comfort index.
Today's report also includes a 0.2 percent rise in the coincident index which points to ongoing growth for the economy. The headline gain for the LEI, together with a positive headline from the Philly Fed, are giving a morning lift to the Dow.
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