Economic Data Comes In Mostly Inline, Economy Choppy, Business Waiting For Certainty After Election

September 17, 2020

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Economic Data Comes In Mostly Inline, Economy Choppy, Business Waiting For Certainty After Election — *Image by alan.light*

Economic data released this morning was mixed, coming mostly in-line. Initial Jobless claims were well below 1M.

The story today in the financial markets is the continuing saga over an additional COVID-19 relief bill that is stuck in Congress. In short Dems want high numbers and most of it going to their constituents. Republicans want way less than 1T, and are concerned about the profligate spending and rising sovereign debt, approaching $30T.

President Trump weighed in, actually providing a life-line to Speaker Pelosi, who was facing a rebellion within her own party over her intransigence. (h/t Zero Hedge). POTUS is looking for additional stimulus prior to the election to help his chances. Pelosi wants the opposite. There-in lies the rub.

Democrats are “heartless”. They don’t want to give STIMULUS PAYMENTS to people who desperately need the money, and whose fault it was NOT that the plague came in from China. Go for the much higher numbers, Republicans, it all comes back to the USA anyway (one way or another!).
— Donald J. Trump (@realDonaldTrump) September 16, 2020

Yesterday, the Federal Reserve declared it would keep interest rates low through 2023 at least, in an attempt to stimulate inflation.

Financial markets were down early on a reaction to the stimulus stalemate, but as of writing, they have recovered.

Building Permits (MoM) (Aug) printed at 1.47M vs 1.52M consensus estimate.

Housing Starts (MoM) (Aug) printed at 1.416M vs 1.478M estimate.

Continuing Jobless Claims (Sep 4) printed at 12.628M vs 13M estimate.

Philadelphia Fed Manufacturing Survey (Sep) printed at the estimate of 15.

Building Permits Change (Aug) printed at -0.9% vs 4.4% estimate.

Initial Jobless Claims (Sep 11) printed at 860k vs 850k estimate.

Housing Starts Change (Aug) printed at -5.1%.

Initial Jobless Claims 4-week average (Sep 11) printed at 912k.

EIA Natural Gas Storage Change (Sep 11) printed at 89B vs 79B estimate.

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CDM Staff

The mission at Creative Destruction Media is to be the catalyst for the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."