The S&P 500 eked out another gain, rising 0.12 per cent — despite 3M joining FedEx in sounding caution in its latest economic forecast (Reuters).
US existing home sales hit a two-year high, as did construction of single-family homes. Resales rose 7.8 per cent in August to an annual rate of 4.82m, the strongest monthly percentage gain since August 2010, and the fastest rate since May of that year (Financial Times). Single-family construction rose 5.5 per cent in August to reach 535,000 units, a level last seen in April 2010 (Wall Street Journal).
The yen rose against the dollar, despite the Bank of Japan’s latest easing. The BoJ extended asset purchases to the end of 2013, increasing their size by ¥10tn. The dollar nevertheless fell as low as ¥78.38 on Tuesday, having risen above ¥79 after the central bank’s announcement (Wall Street Journal).
Sales of 30-year corporate debt have hit $100bn so far this year, on course to surpass the $125bn record set in 2007. Corporate issuers have sold $1.62bn of long-dated bonds since the Federal Reserve’s latest bout of easing alone, according to Dealogic data (Financial Times).
Takeover talks between Canada’s TMX Group and Direct Edge have ended. “We’re currently not in active discussions with anybody,” said the chief executive of Direct Edge, the fourth-largest US stock exchange by activity (Wall Street Journal).
Philly Fed day: the consensus is for a -4.0 reading in business confidence, improving from August’s -7.1 — though with forecasts as low as -10.0. The Markit PMI Manufacturing Flash comes out an hour before: consensus forecast of 51.5.
Jobless claims as usual: consensus 373k.
FURTHER FURTHER READING
– Has the Fed come four years too late?
– Jim Hamilton, $4 a gallon gasoline, and deja vu all over again.
– The Louis Bacon-Erin Brockovich connection.
– “One bond can have many prices, depending on who provides the price.”
– In case you missed it: Daring Fireball’s iPhone 5 review.