Stocks Fall in Choppy Session Amid Mixed Bag of News…..
U.S. equities finished lower in a rollercoaster session, as investors weighed upbeat guidance from Macy’s and a mostly in line inflation report against disappointing data overseas and continued uncertainty surrounding a BREXIT deal. Treasury yields and the U.S. dollar were lower, while gold and crude oil prices were higher, with the latter breaking a 12-session losing streak.
The Dow Jones Industrial Average (DJIA) dropped 206 points (0.8%) to 25,081 and the S&P 500 Index declined 21 points (0.8%) to 2,702, while the NASDAQ Composite shed 65 points (0.9%) to 7,136. In heavy volume, 1.0 billion shares were traded on the NYSE and 2.5 billion shares changed hands on the NASDAQ. WTI crude oil rose $0.56 to $56.25 per barrel and wholesale gasoline was up $0.02 at $1.56 per gallon. Elsewhere, the Bloomberg gold spot price traded $9.18 higher at $1,211.41 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—fell 0.5% at 96.82.
Consumer inflation mostly in line with forecasts, mortgage applications decline…..
The Consumer Price Index (CPI) rose 0.3% month-over-month (m/m) in October, in line with the Bloomberg estimate and above September’s unrevised 0.1% increase. The core rate, which strips out the volatile food and energy components, moved 0.2% higher m/m, matching expectations, and slightly above September’s unadjusted increase. Y/Y, prices were 2.5% higher for the headline rate, matching forecasts and above September’s unrevised 2.3% increase. The core rate was up 2.1% y/y, south of projections of a 2.2% advance, and below September’s unrevised rise.
The MBA Mortgage Application Index declined 3.2%, following the prior week’s 0.7% decrease. The decline came as a 4.3% drop in the Refinance Index was met with a 2.3% fall in the Purchase Index. The average 30-year mortgage rate rose 2 basis points (bps) at 5.17%.
Treasuries were higher, as the yield on the 2-year note was down 4 basis points (bps) to 2.85%, the yield on 10-year note fell 3 basis points to 3.11%, and the 30-year bond rate ticked 1 basis point lower to 3.35%.
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