Sunday, September 27, 2015

Monday: Personal Income and Outlays, Pending Home Sales

by Bill McBride on 9/27/2015 07:52:00 PM

From the NY Times: John Boehner Says There Won’t Be a Government Shutdown

Speaker John A. Boehner said Sunday that he expects the House of Representatives to pass the Senate’s government funding measure with Democratic support this week, averting a shutdown that has looked increasingly less likely since he announced on Friday that he would resign.
Mr. Boehner delivered a clear message to conservative colleagues credited with forcing his hand: Holding the government hostage to achieve untenable policy goals was reckless and harmful to the institution itself.

“We have got groups here in town, members of the House and Senate here in town, who whip people into a frenzy believing they can accomplish things that they know, they know are never going to happen,” Mr. Boehner said in a live interview broadcast on CBS’s “Face the Nation.”

The speaker described these conservative members of his party as “false prophets,” who promise policy victories they cannot deliver. “The Bible says, beware of false prophets,” he said. “And there are people out there spreading noise about how much can get done.”
Who votes for these crazies? I hope Boehner is correct about no shutdown, but I'd like to see a backlash at the voting booth.

Schedule for Week of September 27, 2015

• At 8:30 AM ET, Personal Income and Outlays for August. The consensus is for a 0.4% increase in personal income, and for a 0.3% increase in personal spending. And for the Core PCE price index to increase 0.1%.

• At 10:00 AM, Pending Home Sales Index for August. The consensus is for a 0.5% increase in the index.

• At 10:30 AM ET, Dallas Fed Manufacturing Survey for September.

From CNBC: Pre-Market Data and Bloomberg futures: currently S&P futures are down 12 and DOW futures are down 85 (fair value).

Oil prices were up slightly over the last week with WTI futures at $45.43 per barrel and Brent at $48.60 per barrel.  A year ago, WTI was at $94, and Brent was at $95 - so prices are down about 50% year-over-year (It was a year ago that prices started falling sharply).

Here is a graph from for nationwide gasoline prices. Nationally prices are at $2.29 per gallon (down over $1.00 per gallon from a year ago).