Market commentary

This morning we learned that durable goods orders for the month of June fell 2.1%, driven mostly by orders (or the lack thereof) for transportation equipment. Ex-transportation, orders rose but at a weak 0.1%. While this report is disappointing, it has not moved the markets which are firmly focused on the deficit/debt ceiling debate in Washington right now. Do not forget, however, the sovereign debt crisis in Europe remains, so if U.S. debt is downgraded where do investors go? The U.S. Treasury market is the largest and most liquid market in the world. In light of this, the Swiss franc and gold continue to make daily highs.

Later this morning the U.S. Treasury will auction 5 year notes, and this afternoon the Fed will release its Beige book, which will give us a region by region look at business activity in the U.S.

Bond prices are flat from the market close on Tuesday while stocks are decidedly lower.