Stocks Fall as Balance of Power in Congress Remains Uncertain…..
U.S. equities tumbled in the wake of yesterday’s U.S. midterm elections that failed to provide clarity on the political front. Meanwhile, volatility in the cryptocurrency markets continued as Binance Holdings ditched its plans of acquiring FTX.com, which has experienced some liquidity issues. Earnings reports continued to trickle in, with Dow member Walt Disney Company missing Q4 expectations. In other equity news, Meta Platforms announced large-scale layoffs as the company tries to become a more leaner communication services firm. Treasuries were mixed, and the U.S. dollar was solidly higher, while crude oil prices fell, and gold saw some pressure. Economic news was light, with mortgage applications falling for a seventh-straight week. Asia finished mixed following some Chinese inflation data, and Europe also diverged.
The Dow Jones Industrial Average tumbled 647 points (2.0%) to 32,514, the S&P 500 Index lost 80 points (2.1%) to 3,749, and the Nasdaq Composite plunged 263 points (2.5%) to 10,353. In moderate volume, 4.6 billion shares of NYSE-listed stocks were traded, and 4.9 billion shares changed hands on the Nasdaq. WTI crude oil lost $3.08 to $85.83 per barrel. Elsewhere, the gold spot price declined $7.50 to $1,708.50 per ounce, and the Dollar Index gained 0.8% to 110.48.
Mortgage applications decline for seventh week…..
The MBA Mortgage Application Index dipped 0.1% last week, following the prior week’s decline of 0.5%. The index was down for a seventh-straight week as a 3.5% drop in the Refinance Index more than offset a 1.3% increase for the Purchase Index. The decline came as the average 30-year mortgage rate rose 8 basis points (bps) to 7.14% and is up 398 bps versus a year ago.
Treasury yields were mixed, as the yield on the 2-year note fell 4 bps to 4.62%, the yield on the 10-year note was flat at 4.12%, and the 30-year bond rate was up 2 bps at 4.28%,
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