Treasury prices are higher in response to the North Korea headlines. The 10-year yield is down to 2.21%, the lowest since late June, and the 2-year/10-year yield spread is back below 90 bps.  Global equity indices are lower across the board (Nikkei -1.3%, Euro Stoxx -1.7%), and S&P 500 futures are down 9 points currently.  President Trump warned North Korea that any additional threats to the U.S. “will be met with fire and fury like the world has never seen,” and within hours of those comments, a North Korean news agency said it was considering missile strikes at Guam. Not surprisingly, the strong rhetoric sparked a risk-off trade in the global markets.  Secretary of State Rex Tillerson is trying to ease tensions today, saying that Americans “should sleep well at night and have no concerns about this particular rhetoric of the last few days.”

Jason Haley
Managing Director, Investment Management Group

Indicators

DateTimeEventSurveyActualPriorRevised
08/07/201715:00Consumer CreditJun$15.750b$12.397b$18.410b$18.285b
08/08/201706:00NFIB Small Business OptimismJul103.5105.2103.6
08/08/201710:00JOLTS Job OpeningsJun5750616356665702
08/09/201707:00MBA Mortgage Applications04-Aug3.00%-2.80%
08/09/201708:30Nonfarm Productivity2Q P0.70%0.90%0.00%0.10%
08/09/201708:30Unit Labor Costs2Q P1.10%0.60%2.20%5.40%
08/09/201710:00Wholesale Inventories MoMJun F0.60%0.60%
08/09/201710:00Wholesale Trade Sales MoMJun0.00%-0.50%
08/10/201708:30Initial Jobless Claims05-Aug240k240k
08/10/201708:30Continuing Claims29-Jul1960k1968k
08/10/201708:30PPI Final Demand MoMJul0.10%0.10%
08/10/201708:30PPI Ex Food and Energy MoMJul0.20%0.10%
08/10/201708:30PPI Ex Food, Energy, Trade MoMJul0.20%0.20%
08/10/201708:30PPI Final Demand YoYJul2.20%2.00%
08/10/201708:30PPI Ex Food and Energy YoYJul2.10%1.90%
08/10/201708:30PPI Ex Food, Energy, Trade YoYJul2.00%
08/10/201709:45Bloomberg Consumer Comfort06-Aug49.6
08/10/201714:00Monthly Budget StatementJul-$52.0b-$90.2b
08/11/201708:30CPI MoMJul0.20%0.00%
08/11/201708:30CPI Ex Food and Energy MoMJul0.20%0.10%
08/11/201708:30CPI YoYJul1.80%1.60%
08/11/201708:30CPI Ex Food and Energy YoYJul1.70%1.70%
08/11/201708:30CPI Core Index SAJul251.96251.627
08/11/201708:30CPI Index NSAJul244.925244.955
08/11/201708:30Real Avg Weekly Earnings YoYJul1.10%1.20%
08/11/201708:30Real Avg Hourly Earning YoYJul0.80%0.90%