With the Dow rallying along with the US dollar, China is almost back to normal, plus a look at economic destruction and good luck.

September 30 (King World News) – Peter Boockvar:  Well, that was interesting last night. Or maybe not. Either way, I’m sure it didn’t change any minds or the post debate poll results much. One is either voting for the man, or the personality, or the set of ideas, or the party, or a combination of them all and nothing likely altered that after the display seen. If one was looking at the S&P futures for guidance on what the market thought, it had no idea as it rallied at about 9pm EST and started to selloff at around 10:45pm. 

Economic Destruction
After seeing the Disney news yesterday of 28k job cuts, I’ll chime in and say it is absolutely ridiculous that the state of California has not let Disneyland open yet after Disney World has been open since July and mask wearing and being outside has proven to NOT be a source of Covid spread. Much of our economic damage is of our own making and is beyond ‘the science’ claim. We’ll see if Gavin Newson pivots quickly in response…

To learn which company Eric Sprott just bought a 20%
stake in
 click here or on the image below

Real Estate
Notwithstanding the 5 bp drop in the average 30 yr mortgage rate to a fresh record low of 3.05%, mortgage apps took a breather w/o/w but are still up solidly y/o/y. Purchases fell by 1.9% from last week but are still up 22% y/o/y. Refi’s were down by 6.5% w/o/w but higher by 52% y/o/y. As I questioned yesterday, ahead of pending home sales data today for August, is at what point do the aggressive home price increases begin to temper demand. 

China Almost Back To Normal
China saw a slight increase in its September PMI’s. The manufacturing component, state sector weighted, rose to 51.5 from 51 and just above the estimate of 51.3. Services grew by .7 pts to 55.9 which was better than the forecast of a decline to 54.7. That services print is the best since late 2013. I attribute much of this to an economy that is almost back to normal in terms of having everything open and populated again. Movie theaters are packed (attendance at 90% of what it was pre Covid) as are restaurants and theme parks to give some examples.

Good Luck
The euro is weaker after ECB President Lagarde said they will investigate the Fed’s new average inflation targeting and will consider it for themselves. Six years of NIRP and massive QE hasn’t gotten what they wanted, because it killed the banks, but they will look into doing it anyway. Good luck.

***To listen to the incredibly powerful audio interview with Danielle DiMartino Booth that is a must listen for anyone who wants to understand the big picture as she covers everything from the need for investors to aggressively buy the current dip in gold prices to the stock market hitting the biggest bubble level in history and much more. To listen to this incredibly powerful interview click here or on the image below.

This Could Turn Into A Serious Problem
***ALSO JUST RELEASED: This Could Turn Into A Serious Problem After The US Election Or Even Before

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