Action Economic Survey results
Action Economic Survey results: it's up, up, and away for equities amid signs of stronger growth, while yields are starting to soar too, as the Fed and other central banks are easing off on QE. It was mid-1967 when the Fifth Dimension had their hit "Up, Up, and Away," and at that time the 10-year Treasury note had a 5-handle, the Dow was either side of 900, and the dollar index was at 119. Of course, the Dow is lightyears away from 900, but how much higher can it go is a major question. Also of importance for the markets will be the steepness of the ascent of Treasury yields. This week's Survey Medians suggest data will remain robust enough to underpin expectations for solid growth in early 2018. Housing numbers and manufacturing reports dominate the slate ahead, though the former remain impacted by the various disasters. Starts are expected to drop 1.7% to a 1.275 M pace in December, according to the Median, after strong gains in October and November. Sales should slide too. Meanwhile, December industrial production is expected to tack on another 0.4%, while the Empire State and Philly Fed indexes remain robust. This week's Survey also shows the FOMC hiking rates 25 bps at the March meeting.