New unemployment claims fell to 230,000 last week

Aug. 24:

Weekly initial jobless claims dropped to 230,000 last week, continuing to demonstrate the strength of the labor market. The less volatile four-week moving average now stands at 236,750. 

Transportation drove decline in durable goods orders

Advance durable goods dropped 5.2% in July, although most of that was due to a 14.3% decrease in new orders for transportation equipment. Excluding transportation, new orders for manufactured durable goods were up 0.5%.

Business activity index shows output slowed in August

The S&P Global Flash US Composite PMI, a measure of business activity, was at 50.4 in August. That’s just above 50, the border dividing an outlook for expansion from contraction.

New home sales jumped 4.4% last month

New home sales were up 4.4% in July. Annualized sales rose to 714,000, the highest level since February 2022.

State of the market

This morning, the Dow traded up slightly and there was a little flattening in the Treasury yield curve.  

Economic calendar

Thursday, Aug. 24

• Advance Durable Goods
• Weekly Initial Jobless Claims

Friday, Aug. 25

• University of Michigan Consumer Sentiment
• Federal Reserve Chair Jerome Powell is scheduled to speak at 7:05 a.m. PST at the central bank’s annual Jackson Hole Economic Symposium. The topic for the symposium, held Aug. 24 to 26, is “Structural Shifts in the Global Economy.”

Treasury calendar

Wednesday, Aug. 23

• Yesterday’s auction of $16 billion in 20-year Treasury bonds resulted in a yield of 4.499%, with demand lower than at the previous such auction. There was also a $24 billion auction of two-year Floating Rate Notes, resulting in a high discount margin of 0.165%, also with lower demand.

Thursday, Aug. 24

• $8 billion auction of 30-year Treasury Inflation-Protected Securities

By Mike Kraft, Executive Director and Commercial Real Estate Treasurer for Commercial Banking