Fed feast: Consumer confidence, durable goods, new home sales, and more
SPY•US consumer confidence rose 7.5 points to 91.7 in October, durable-goods orders increased 1.8% in September, and new-home sales fell 0.6% to a 676,000 annualized rate. Stocks advanced, led by the Nasdaq, as investors weighed the data ahead of the Federal Reserve meeting.
1. Mixed economic data
The October Conference Board consumer confidence index rose 7.5 points to 91.7, exceeding consensus by 1.7 points. Assessments of current conditions improved 7.7%, and near-term expectations rose 10.5%, though the Conference Board said confidence remained on a long-term downward trend.
2. Orders and housing
US durable-goods orders increased 1.8% in September. Commercial aircraft orders rose 28.4%, while orders excluding transportation items gained 0.5%; core capital-goods orders rose 0.5%, below the 0.7% consensus. New single-family home sales slipped 0.6% to a 676,000 seasonally adjusted annual rate, above analysts’ 650,000 estimate.
3. Markets advance
The Nasdaq rose about 1.1%, the S&P 500 gained about 0.6%, and the Dow edged higher. Technology led S&P 500 sectors, while energy was weakest. The US 10-year Treasury yield was nearly unchanged at about 4.99% ahead of the Federal Reserve’s policy meeting.
