- The Dow closed down 138 points or 0.31%,
- Nasdaq closed down 115 points or 0.60%,
- S&P 500 closed down 23 points or 0.38%,
- Gold $2,636 up $15.60 or 0.60%,
- WTI crude oil settled at $69 down $0.01 or 0.01%,
- 10-year U.S. Treasury 4.250 down 0.052 points or 1.209%,
- USD index $106.06 down $0.95 or 0.89%,
- Bitcoin $96,629 up $4,685 or 5.1%, (24 Hours)
*Stock data, cryptocurrency, and commodity prices at the market closing
Today’s Highlights
The U.S. stock market experienced a bad day on Wednesday as investors analyzed new inflation data. The Federal Reserve’s preferred inflation gauge showed minimal progress towards the 2% target in October. Traders now estimate a 34% chance the Fed will maintain current interest rates, up from 24% a month earlier. The third-quarter GDP remained unchanged. Dell shares plummeted over 12% due to declining PC demand. HP stock also dropped more than 11% following its earnings report. The market mood was subdued ahead of the Thanksgiving holiday, with markets set to close on Thursday and have shortened hours on Friday.
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
New orders for manufactured durable goods in October 2024 were up 2.7% year-over-year (increased from -1.7% year-over-year last month). This was a healthy increase which suggests consumers returned to the spending trough in October.
Real (inflation adjusted) personal income improved from 2.6% year-over-year last month to 2.7% in October 2024. Real personal consumption expenditures declined from 3.1% last month to 3.0% in October. Inflation worsened with the PCE price index worsened from 2.1% last month to 2.3% in October and this same price index excluding food and energy worsened from 2.7% last month to 2.8% in October. As predicted, inflation worsened and I see inflation worsening for at least the next 6 months. This is the inflation index the Federal Reserve prefers to gauge inflation.
The second estimate of Real gross domestic product (GDP) increased at an annual rate of 2.8% in the third quarter of 2024. In the second quarter, real GDP increased 3.0 percent. This was unchanged from the advance estimate. The inflation measure in GDP (implicit price deflator) improved from 2.6% in 2Q2024 to 2.2% in 3Q2024. Not much I can add but in the new normal, growth over 2% year-over-year is good.
Pending home sales (homes under a sales contract) increased 5.4% year-over-year in October 2024 according to NAR. The NAR can be likened to the fox watching the chicken coop. In the graph below shows data provided by realtor.com – a licensee of the NAR owned by News Corp which shows year-over-year gains of 9.9% in pending home sales. In any event, pending home sales is trending up. Chief Economist Lawrence Yun adds:
Homebuying momentum is building after nearly two years of suppressed home sales. Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.
In the week ending November 23, the advance figure for seasonally adjusted initial unemployment claims 4-week moving average was 217,000, a decrease of 1,250 from the previous week’s revised average. The previous week’s average was revised up by 500 from 217,750 to 218,250. This data is consistent with a strong economy.
The Chicago Business Barometer™ eased 1.4 points to 40.2 in November 2024. This was the second consecutive monthly fall from 46.6 in September, leaving the index 2.7 points below the year-to-date average. The decline was due to four of the five subcomponents falling (Production, New Orders, Order Backlogs and Employment), with only Supplier Deliveries rising in October. The Chicago PMI is believed to be a window into the PMI manufacturing index which will be released next week. Manufacturing is in a recession in the US.
Here is a summary of headlines we are reading today:
- Electric Capital Spending Has Skyrocketed, and It’s Only the Start
- Reuters: Exxon Lobbyist Investigated Over Leak Of Environmentalist Emails
- Lebanon Cease-Fire Deal Is a Major Victory For Israel
- China’s Industrial Sector Posts Large Profit Decline In October
- UAE’s Oil Giant Launches $80-Billion Chemicals and Green Energy Firm
- Russia’s Fuel Exports Jump to 8-Month High
- Russia’s Shadow Fleet Has Moved Its Oil Smuggling Operations to New Waters
- Goldman Sachs: OPEC+ Cuts Provide Near-Term Upside to Oil Prices
- Homebuyer demand for mortgages jumps 12% after first interest rate drop in over 2 months
- U.S. Court Could Reopen Bidding for Oil Refiner Citgo After Failed Deal
- ‘Europe’s Detroit’ built a thriving car industry. Trump tariffs now threaten to unravel its success
- Is Reviving Keystone XL More Than Just A Pipe Dream?
- Russia Reveals 2 Dead, Radar Site Damaged, After US-Supplied Missiles Struck Kursk
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.