August 3, 2017
The run of Thursday's economic news is solid and underscored by another week of favorably low levels of jobless claims. Saved by aircraft, factory orders proved strong in June while advance service-sector readings are mixed to positive and in sum continue to show moderate to solid rates of growth. A strong payroll showing in tomorrow's employment report, combined with a lift in average hourly earnings, would confirm confidence for a strong second-half showing for the entire economy.
Stocks have been holding sideways in recent sessions but not the Dow which pressed ahead with a 7th record close, up fractionally to 22,026. New records or not, demand for the safety of U.S. Treasuries is strong with the 10-year yield down a tangible 5 basis points to 2.22 percent. Without new Saudi talk of output cuts, oil slipped back to just below $49.