Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (flat) all trade near their unchanged levels as the stock market continues to trade in a mixed fashion this morning. 

Fed Vice Chair Philip Jefferson stated in a speech this morning that he supported last month's 25-basis-point rate cut, though he added, "The evolving balance of risks underscores the need to proceed slowly as we approach the neutral rate."

The CME FedWatch tool currently assigns a 44.9% probability to a 25-basis point rate cut at the December FOMC meeting, little changed from Friday's odds. 

Total construction spending increased 0.2% month-over-month in August (Briefing.com consensus: 0.1%) following an upwardly revised 0.2% increase (from -0.1%) in July. Total private construction was up 0.3% month-over-month, while total public construction was flat month-over-month. On a year-over-year basis, total construction spending was down 1.6%.

The key takeaway from the report is that the increase in spending came solely from the residential side; unfortunately, that did not include new single-family construction activity. The strength was concentrated in new multifamily construction.