One of the larger components of the Personal Consumption Expenditures (CPE) is Shelter and Energy. Saudi Arabia who is the world’s largest oil exporter will be increasing Production by the end of the year. Right now oil is running just under $68 per barrel. They abandoned their $100 target.

As oil prices go down so does inflation. When inflation drops so does the Feds proclivity to drop their rates, as their rates drop….

Pending homes sales rose 0.6% in August stronger than expected.

Initial Jobless Claims fell for the first time in awhile 4,000 to 218,000.

Q2 GDP shows the US economy grew 3%, stronger than expected.

All in all generally good news but a mixed bag. We have seen a pull back with the bond market that has not helped rates this week..

Lets see what tomorrow brings when the PCE Inflation numbers hit.