Economic Data Continues to Soar

Chicago PMI came in at 66.2 reading the highest since March 2011 and significantly higher than the 61.0 Wall Street consensus.

Output and demand moved higher for the third straight month and backlog climbed to its highest level in 43 years.

The lone red flag was employment, which slipped below 50 which means contraction.

Also on the economic front, according to Case Shiller, home prices in August reached new all-time highs, with the U.S. National Home Price NSA index rising 6.8%. National home prices were up 6.1% compared to an expectation of a 5.8% increase.  The 20 city index, a key reading, was up 5.9% after being up 5.8% in July. David Blitzer, a managing director at S&P Dow Jones indexes, said “home price increases appear to be unstoppable.”

In the latest on tax reform, President Trump hopes the House will pass a bill by Thanksgiving that he can sign by Christmas. The House Republicans plan to unveil a draft this Wednesday.  When it comes to a phasing in of corporate tax rate reductions, the president said “We’re not looking for that, hopefully not.”