The major averages plunged in morning trade, entering the final hour with large losses on generally positive but not overly significant economic data.
Consumer Credit beat expectations in August with a 21 billion Dollar gain. A 3rd solid advance in the last 4-months. Non-revolving credit, essentially student and auto loans advanced strongly for a 2nd month up 15.2 billion. Consumer pulled out their credit cards for a 4.8 billion Dollar gain, a 3-month high. Nothing says success like record debt levels.
The Mortgage Bankers Association reports that its weekly activity index slipped 1.7%. Purchase apps fell 1.1%, refi’s dropped 2.6%. The 30-year contract rate for a jumbo loan increased fractionally to 4.99%. this series continues to drift lower as the Fed raises rates.
The Producer Price Index or PPI advanced .2% in September. Large gains were seen in core intermediate and unprocessed goods. On a year ago basis the PPI slipped to 2.7% a 5-month low.
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