Big losses in China's stock market, triggered by government plans to limit lending, sent commodity prices down overnight and made for a rough U.S. opening. A steep 2.5 percent headline drop in durable goods didn't help either, even though the results were skewed, as they often are, by month-to-month swings in aircraft orders. Outside of aircraft, the report points to diminishing rates of decline echoed later in the day in a wider view by the Fed's Beige Book which points to very modest growth in the second half. The S&P 500 fell 0.5 percent to just over 975.
The Treasury's 5-year auction proved a major flop as non-dealers stayed away. Treasuries had been rallying on equity losses but gains were trimmed and turned to minor losses with the yield on the 5-year note ending 4 basis points higher on the day at 2.64 percent.
The dollar index held onto its gains through the day, ending 0.8 percent higher at 79.51. Commodities were hurt by the dollar while oil was specifically hurt by a big build in weekly crude stocks. Oil sank through the day to end at $63 for a $4 loss. Gold lost nearly $10 to end at $931
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