Yesterday’s rebound was a fleeting memory, as U.S. equities saw solid declines amid escalated global uneasiness surrounding the economic/currency turmoil in Turkey, soft economic data out of China, and continued pressure on technology stocks. Commodities also sold off, as gold and copper tumbled, and crude oil prices dropped in the wake of an unexpected rise in oil inventories. Treasury yields fell amid the negative sentiment, with mostly upbeat economic reports providing little help, while the U.S. dollar was nearly unchanged.

The Dow Jones Industrial Average (DJIA) declined 138 points (0.5%) to 25,162, the S&P 500 Index decreased 22 points (0.8%) to 2,818, and the NASDAQ Composite was 97 points (1.2%) lower at 7,774. In moderately-heavy volume, 797 million shares were traded on the NYSE and 2.3 billion shares changed hands on the NASDAQ. WTI crude oil tumbled $2.01 to $65.01 per barrel and wholesale gasoline lost $0.03 to $2.00 per gallon. Elsewhere, the Bloomberg gold spot price plunged $18.48 to $1,175.61 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was nearly unchanged at 96.69.

Advance retail sales for July rose 0.5% month-over-month (m/m), above the Bloomberg forecast of a 0.1% gain, while June’s figure was downwardly revised to a 0.2% rise. Last month’s sales ex-autos were up 0.6% m/m, versus expectations calling for a 0.3% rise and the negatively-revised 0.2% gain seen in June. Sales ex-autos and gas rose 0.6% m/m, compared to estimates of a 0.4% gain and June’s downwardly-revised 0.2% increase. The control group, a figure used to calculate GDP, grew 0.5%, compared to projections of a 0.4% gain and June’s negatively- revised 0.1% dip.

The Empire Manufacturing Index showed output from the New York region unexpectedly accelerated further into expansion territory (a reading above zero) for August. The index rose to 25.6 from July’s unrevised 22.6 level, with forecasts calling for a dip to 20.0.

Preliminary Q2 nonfarm productivity rose 2.9% on an annualized basis, versus expectations of a 2.4% gain, following the downwardly- revised 0.3% increase seen in Q1. Unit labor costs declined 0.9%, versus the forecast calling for a flat reading. Unit labor costs were revised upward to a gain of 3.4% in Q1.

The Federal Reserve’s industrial production report showed a 0.1% m/m uptick in July, compared to estimates of a 0.3% gain, but June’s 0.6% rise was revised to a 1.0% increase. Manufacturing output rose slightly, offset by declines for mining and utilities production. Capacity utilization held steady at the prior month’s upwardly-revised 78.1% rate, and versus forecasts of 78.2. Capacity utilization is 1.7 percentage points below its long-run average.

The National Association of Home Builders (NAHB) Housing Market Index showed homebuilder sentiment this month dipped to 67 from July’s unrevised 68 level, in line with forecasts. However, a reading of 50 separates good and poor conditions. The NAHB said builders continue to report strong demand for new housing, fueled by steady job and income growth along with rising household formations, but they are increasingly focused on growing affordability concerns, stemming from rising construction costs, shortages of skilled labor and a dearth of buildable lots.

The MBA Mortgage Application Index declined 2.0% last week, following the prior week’s 3.0% decrease. The fall came as a flat reading for the Refinance Index was met with a 3.3% drop in the Purchase Index. The average 30-year mortgage rate decreased 3 basis points (bps) to at 4.81%.

Business inventories ticked 0.1% higher m/m in June, matching forecasts, and following May’s downwardly-revised 0.3% gain.

Treasuries were higher, as the yields on the 2-year and 10-year notes, along with the 30-year bond, fell 3 bps to 2.61%, 2.86% and 3.03%, respectively.

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