[B]Fed widely expected to cut rates by 25 basis points, but will it be enough to boost stock markets?[/B][B][/B]
[B]Risk premiums in corporate lending remain very elevated – signaling potential for further difficulty[/B]
[B]Shares in consumer spending, housing, and construction remain indecisive on mixed data[/B]
[I]Click here to join DailyFX Analysts in discussing the Watch What the Fed Watches latest report.[/I]
Credit Market
Last Week
Current
Change
% Change
Outlook *
DJ Credit Default Swaps
60.42
61.52
1.10191
1.82%
Deteriorating
10 Year Junk-Bond Spread
425.00
408.43
-16.56
-3.90%
Improving
Credit Card Delinquencies
3.41
3.49
0.08
0.08%
Deteriorating
Mortgage Delinquencies
4.84
5.12
0.28
0.28%
Deteriorating
Consumer Credit
9.6
12.2
2.6
2.60%
Improving
Stock Market
Last Week
Current
Change
% Change
Outlook
Dow Jones Industrial Average
13675.25
13836.85
161.6
1.18%
Improving
Dow Jones Real State Index
292.56
297.13
4.57
1.56%
Improving
Dow Jones Financial Index
666.96
687.16
20.2
3.03%
Improving
Dow Jones Retail Index
120.26
122.31
2.05
1.70%
Improving
S&P Volatility
20.8
20.54
-0.26
-0.26%
Deteriorating
Economic Indicators
Previous
Current
Change
% Change
Outlook
Mortgage Applications
-2.8
3.8
6.6
6.60%
Improving
New Home Sales
735
770
35
4.76%
Improving
Personal Spending
0.4
0.6
0.2
0.20%
Improving
Personal Income
0.5
0.3
-0.2
-0.20%
Deteriorating
PCE
2.1
1.8
-0.3
-0.30%
Deteriorating
Initial Jobless Claims
313
331
18
5.75%
Deteriorating
[B]<span style=“font-size: 9pt; font-family: Arial;”>[/B]
[B]Improving [/B]outlook means the Federal Reserve could use this indicator to support a rate hike. The opposite stands for deteriorating outlook.
