U.S. equities were lower, putting a cap on gains seen for the week, as earnings domestically and across the pond appeared to weigh on sentiment, as well as a hotter-than-expected read on wholesale price inflation. Treasuries were higher following the inflation data, and the U.S. dollar gained ground, while gold fell sharply and crude oil prices breached bear market territory.

The Dow Jones Industrial Average (DJIA) fell 202 points (0.8%) to 25,989, the S&P 500 Index decreased 26 points (0.9%) to 2,781, and the NASDAQ Composite declined 124 points (0.7%) to 7,407. In heavy volume, 934 million shares were traded on the NYSE and 2.4 billion shares changed hands on the NASDAQ. WTI crude oil lost $0.48 to $60.19 per barrel and wholesale gasoline was $0.02 lower at $1.64 per gallon. Elsewhere, the Bloomberg gold spot price tumbled $14.37 to $1,209.63 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was up 0.2% at 96.93. Markets were higher for the week, as the DJIA increased 2.8%, the S&P 500 Index rose 2.1%, and the NASDAQ Composite gained 0.7%.

The Producer Price Index (PPI) showed prices at the wholesale level in October rose 0.6% month-over-month (m/m), compared to the Bloomberg forecast for it to match September’s unrevised 0.2% gain. Month-over-month producer prices rose to the highest levels since 2012. The Core rate, which excludes food and energy, was up 0.5% m/m, versus expectations to match September’s unrevised 0.2% increase. Y/Y, the headline rate was 2.9% higher, versus projections of a 2.5% gain and September’s unrevised 2.6% increase. The core PPI rose 2.6% y/y last month, north of estimates of a 2.3% rise, versus September’s unrevised 2.5% gain.

The November preliminary University of Michigan Consumer Sentiment Index dipped to 98.3 from October’s final read of 98.6, and compared to expectations for a decline to 98.0. A rise in the consumer expectations component of the survey countered a decline in the current economic conditions portion. The 1-year inflation forecast ticked higher to 2.9% from 2.8%, and the 5-10 year inflation forecast increased to 2.4% from the previous 2.3% rate.

Wholesale inventories were revised higher to a 0.4% m/m rise for September from the preliminary estimate of a 0.3% gain, where it was expected to remain. August’s figure was unrevised at a 0.9% increase. Sales were up 0.2% m/m, compared to August’s downwardly-revised 0.7% gain, and versus estimates of a 0.4% rise. The inventory-to-sales ratio—the amount of time it would take to deplete inventories at the current sales pace—remained at August’s 1.26 months rate.

Treasuries were higher, as the yield on the 2-year note fell 3 basis points (bps) to 2.93%, the yield on the 10-year note declined 5 bps to 3.19%, and the 30-year bond rate declined 4 bps 3.39%.

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