November 21, 2011
CONSUMER PRICES
RETREAT IN OCTOBER
For the first month since June, consumer inflation decreased. The biggest influence on the 0.1% decline in the Consumer Price Index? Falling retail gasoline prices. New car prices also saw their biggest one-month drop in nearly two years. Core CPI rose 0.1% in October; annualized inflation lessened to 3.5% with annualized core CPI at 2.1%. Producer prices declined last month as well, going -0.3% after a +0.8% September showing; core PPI was flat in October.1,2
For the first month since June, consumer inflation decreased. The biggest influence on the 0.1% decline in the Consumer Price Index? Falling retail gasoline prices. New car prices also saw their biggest one-month drop in nearly two years. Core CPI rose 0.1% in October; annualized inflation lessened to 3.5% with annualized core CPI at 2.1%. Producer prices declined last month as well, going -0.3% after a +0.8% September showing; core PPI was flat in October.1,2
RETAIL SALES,
HOUSING STARTS, LEI ALL ENCOURAGE
The Commerce Department said U.S. retail purchases increased by 0.5% in October – the fifth consecutive monthly gain. While overall housing starts declined 0.3% last month, single-family home construction improved by 5.1%. October housing permits were 17.7% above year-ago levels. The Conference Board’s index of leading economic indicators rose a striking 0.9% in October, with the boost in home construction a key factor.2,3,4,5
The Commerce Department said U.S. retail purchases increased by 0.5% in October – the fifth consecutive monthly gain. While overall housing starts declined 0.3% last month, single-family home construction improved by 5.1%. October housing permits were 17.7% above year-ago levels. The Conference Board’s index of leading economic indicators rose a striking 0.9% in October, with the boost in home construction a key factor.2,3,4,5
GOLD & OIL
PRICES SLIDE
In fact, gold had its roughest trading week since September, with prices pulling back 3.5% to $1,720.10 at Friday’s COMEX close. Oil prices also descended: crude settled at $97.41 per barrel on the NYMEX at week’s end.6,7
In fact, gold had its roughest trading week since September, with prices pulling back 3.5% to $1,720.10 at Friday’s COMEX close. Oil prices also descended: crude settled at $97.41 per barrel on the NYMEX at week’s end.6,7
STOCKS LOSE SOME GROUND
Investors weren’t buying much last week, what with one eye on Europe and another on the “super committee” impasse in Congress. The Dow, S&P 500 and NASDAQ all pulled back for the week as follows: DJIA, -2.94% to 11,796.23; S&P 500, -3.81% to 1,215.67; NASDAQ, -3.97% to 2,572.50.8
Investors weren’t buying much last week, what with one eye on Europe and another on the “super committee” impasse in Congress. The Dow, S&P 500 and NASDAQ all pulled back for the week as follows: DJIA, -2.94% to 11,796.23; S&P 500, -3.81% to 1,215.67; NASDAQ, -3.97% to 2,572.50.8
THIS WEEK: Monday, the
National Association of Realtors tells us about October existing home sales and
Hewlett-Packard and Tyson Foods issue 3Q results. Tuesday brings the second
estimate of 3Q GDP, the most recent Federal Reserve policy meeting minutes and earnings
from Campbell Soup and Hormel Foods. Wednesday is big indeed: the day before
Thanksgiving is the deadline for the Congressional “super committee” to approve
a deficit-trimming plan. Wednesday will also see the release of data on October
consumer spending and October durable goods orders, plus the latest initial
claims figures and the final University of Michigan consumer sentiment poll for
the month. Thursday being Thanksgiving, all U.S. financial markets will be
closed. This Friday will be Black Friday, of course; the NYSE will have a
shortened trading day.
|
% CHANGE
|
Y-T-D
|
1-YR CHG
|
5-YR AVG
|
10-YR AVG
|
|
DJIA
|
+1.89
|
+5.50
|
-0.89
|
+1.82
|
|
NASDAQ
|
-3.03
|
+2.31
|
+1.04
|
+3.30
|
|
S&P
500
|
-3.34
|
+1.59
|
-2.65
|
+0.56
|
|
REAL YIELD
|
11/18 RATE
|
1 YR AGO
|
5 YRS AGO
|
10 YRS AGO
|
|
10 YR
TIPS
|
0.05%
|
0.83%
|
2.33%
|
3.50%
|
Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 11/18/118,9,10,11
Indices are unmanaged, do not
incur fees or expenses, and cannot be invested into directly.
These returns do not include
dividends.
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