Registered Investment Adviser Caleb Lawrence
After opening lower on generally disappointing data the major averages recovered some of their early declines to enter the final hour with modest losses. I’ll note that tech stock darling Tesla Motors officially made it into bear market territory today with an intraday low more than 20% below its intraday high of $389.61 set in mid-September.
The Mortgage Bankers Association reports that mortgage activity advanced 3.1% last week as refi’s jumped 6.3% and purchase apps advanced .5%. The 30-year contract rate for a jumbo loan was unchanged at 4.12%.
The New York fed regional manufacturing index fell 10.8 points in November to 19.4 on employment related weakness.
Retail sales advanced .2% in October as the previous month’s hurricane related bounce evaporated with building materials and gasoline stations both recording notable declines.
Unlike the Producer Price Index that shows material price gains of late at the wholesale level. The CPI or Consumer Price Index is following a more muted path with a .1% advance in October. The year ago rate slipped .2% to 2% a second month at or above the Fed’s stated 2% target, on a decline in energy prices.