Today's Key Market News - It's Over! Now Let's Build More Square Cars!

(Stocks in article: NYSE: GM, NYSE: F, NYSE: TM, Nasdaq: AMZN, Nasdaq: NDAQ, Nasdaq: PLUG, Nasdaq: BLDP, NYSE: LUM, Nasdaq: MTSN, NYSE: ATU, NYSE: GY)

Equities opened broadly higher today! Go figure... Durable goods orders taken during the month of August were reported earlier this morning, providing yet another piece of horrible economic data that implies economic woes to come. August's orders declined 4.9%, worse than the 4% drop that was expected by the consensus of economists surveyed by Bloomberg. August's decline followed a revised July rise, now measured at 6.1% growth. We have been pounding the table here for awhile regarding our view that eventually, soft U.S. demand will impact manufacturers, despite the growth of global markets. This is based on the fact that American consumers still butter the bread of American producers. Sure, a growing stream of revenue is reaching U.S. multinationals from exports, with some 29% of revenues now derived from international sources. Still, a multitude of producers and small businesses, which dominate our economy, are limited to the U.S. market.

Detroit and New York were enthused that General Motors (NYSE: GM) came to agreement with the UAW, ending its national strike after only a couple days on the picket line. More importantly, it appears the UAW has agreed to exchange billions in corporate health care obligations for the improved job security of its members. The deal will likely help GM to bridge the cost gap toward its toughest rival, Toyota Motor (NYSE: TM). The agreement shows that the UAW comprehended the gravity of the situation, and understood that more American jobs might be lost otherwise. So now GM autoworkers can get back to building competitively inadequate square-shaped gas guzzlers! The deal also signifies that future agreements are likely with Ford (NYSE: F) and Chrysler. The auto sector is higher as a result today, led by GM. However, we want to remind investors that Toyota, which is the apparent loser here, was also impacted by plant shutdown this past quarter. It's own closure was driven by natural disaster, however, not union confrontation.

The American Banker's Association reported some key information on the state of consumer credit today. Delinquencies on home equity lines of credit moved to their highest level in 5-1/2 years (0.77% in Q2), but before you go cutting your ear off Van Gogh, take note that the ABA's composite delinquency rate declined. Also, the rate of late payment on credit cards actually improved as well, to 4.39%, from 4.41% in Q1. However, plenty of variable rate mortgages are in the process of resetting payments higher, and the employment situation looks to be slackening. The consumer remains stressed by relatively high energy, gasoline and food costs as well. Thus, we expect these ABA readings are more likely to deteriorate in future quarters than to improve. Please find today's handpicked market-moving news below:

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