U.S. personal income rose 0.2% in October, with spending up 0.2% U.S. personal income rose 0.2% in October, with spending up 0.2% and both measures undershooting expectations The 0.2% income gain in September was not revised while the 0.2% drop in income was revised to unchanged. The PCE chain price index rose 0.1% m/m in October after the matching 0.1% gain in September. The core PCE chain price index rose 0.2% m/m in October after the 0.1% gain in September.
Futures drift lower following early economic reports Stock futures drifted lower following the release of several economic data points. Durable goods orders rose 0.4% overall versus expectations of a decline of 0.6% ,while the core reading which removes transportation items, was down 0.9% versus expectations of an increase of 0.5%. There were 313K initial jobless claims versus the expected 288K, while continuing claims came in at 2.31M versus the expected 2.34M. Personal income rose 0.2% versus expectations of an increase of 0.4% and spending rose 0.2% versus the expected increase of 0.3%.
U.S. mortgage applications fell 4.3% in the week ended November 21 U.S. mortgage applications fell 4.3% in the week ended November 21 following a 4.9% jump the week before. This included a 4.8% drop in the purchase index and a 3.5% decline in refinancings. The index has declined in 4 of the past 5 weeks after surging 11.6% in the week ended November 17. The average rate on a 30-year fixed rate mortgage slid to 4.15% from 4.18%, while the 15-year rate declined to 3.35% versus 3.38%. The data continue to reflect a sluggish recovery in the housing market.
U.S. Durable Goods Preview U.S. Durable Goods Preview: October durable goods data will be released on Wednesday and orders are expected to decline a further 0.5% (median -0.6%) after their 1.1% decline in September. Shipments are expected to remain unchanged and inventories are expected to grow by 0.4% to match their September rate. Data in line with this forecast would leave the I/S ratio at 1.65 from 1.64.