Stock Market Update

The S&P 500 futures are up 16 points and are trading 0.3% above fair value, the Nasdaq 100 futures are up 66 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 253 points and are trading 0.7% above fair value.

Initial jobless claims for the week ending August 24 decreased by 2,000 to 231,000 while continuing jobless claims for the week ending August 17 increased by 13,000 to 1.868 million.

The key takeaway from the report is the steady standing of initial jobless claims, which remain well below levels typically associated with an economy in recession.

The second estimate for Q2 GDP was revised up to 3.0% from the preliminary estimate of 2.8% on the back of an upward revision to consumer spending. The GDP Deflator was revised up to 2.5% from 2.3%.

The key takeaway from the report is that consumer spending was solid in the second quarter, exceeding the prior eight quarter average of 2.2%.

Treasury yields moved higher in response. The 10-yr yield moved to 3.88% from 3.83% and the 2-yr yield moved from 3.86% to 3.89%.