Stock Market Update

Equity futures point to a mostly lower open, little changed in reaction to this morning's slate of economic data.

Personal Income increased 0.4% month-over-month in July (Briefing.com consensus 0.2%), personal spending was up 0.2% (Briefing.com consensus 0.2%), the PCE Price Index was up 0.2% (Briefing.com consensus 0.1%), and the core-PCE Price Index also rose 0.2% (Briefing.com consensus 0.2%). On a year-over-year basis, the PCE Price Index was up 3.7% versus 3.7% in June, and the core-PCE Price Index was up 3.3% versus 3.3% in June.

The key takeaway from the report is that year-over-year rates for the PCE Price Index (3.7%) and the core-PCE Price Index (3.3%) remained at levels from June, so the report did little to alter the market's view of the latest income and spending trends.

Durable goods orders rose 1.1% month-over-month in July (Briefing.com consensus 0.5%) after a revised 0.5% increase (from 0.3%) in June. Excluding transportation, durable goods orders were up 0.4% month-over-month (Briefing.com consensus 0.5%) after increasing a revised 1.1% (from 0.6%) in June.

The key takeaway from the report is that the headline beat was driven by a 12.7% jump in orders for nondefense aircraft and parts while growth in orders excluding transportation undershot expectations slightly due in part to a pullback in new orders for computers and electronic products (-1.1%). However, these orders are still up a healthy 14.3% year-over-year.

The second estimate of Q2 GDP showed no revision from the advance estimate of 1.5% (Briefing.com consensus 1.5%). The GDP Chain Deflator was revised up to 6.4% (Briefing.com consensus 6.3%) from 6.3% in the advance estimate.

The key takeaway from the report is that the overall growth reading held steady as an upward revision to real final sales to private domestic purchasers (to 4.2% from 3.9%) offset a higher drag from imports.