Trump rally roars ahead
Dow Jones average up nearly 300 points at 10:00 am
US stocks rallied to start the week as new data suggests economic fundamentals are strong. The Commerce Department reported that capital goods orders excluding aircraft rose by 1.1% on the month and 9.3% on the year, a performance roughly equal to past periods of strong economic growth.
Capital investment has been an enormous laggard in the substandard recovery during the Obama years, and the October report is the strongest we have seen in more than a decade (excluding the bounce-back from the extreme post-crisis lows. The New York Fed’s “Nowcast” tracking model of Q4 GDP growth puts the annualized level at 3.93% prior to the strong orders report, and the Atlanta Fed’s “GDPNow” model reads 3.5%.