U.S. Stock Indexes Flat After Mixed Data

bieU.S. stock indexes are flat on Wednesday following mixed economic data led by new home sales for October that rose slightly higher than expectations and inflation data that came in weaker than expected but is likely not low enough for the Federal Reserve to want to delay hiking interest rates at their next policy meeting in December.

Sales of new single family homes rose in October to 495,000, moving slightly above the 490,000 forecast from briefing.com. The October sales number is 10.7 percent above the revised September rate of 447,000 and is 4.9 percent above the October 2014 estimate of 472,000, according to the Commerce Department.

October PCE Inflation

Real PCE, which is PCE adjusted to remove price increases, rose 0.1 percent in October and matched the same level in September, according to the Bureau of Economic Analysis.

The price index for PCE increased 0.1 percent in October in contrast to a decrease of 0.1 percent in September.

The PCE price index, excluding food and energy, increased less than 0.1 percent, compared to an increase of 0.2 percent.

On an annual basis, Core PCE , excluding food and energy, increased 0.2 percent from October a year ago.

The October PCE price index, excluding food and energy, increased 1.3 percent from October a year ago and still remains below the Fed’s 2 percent inflation target with low oil prices and a strong dollar weighing down inflation price increases.

Durable good orders for October came in at 3.0 percent and was well above the 1.7 percent forecast from briefing.com

Consumer confidence for October rose to 90.4 percent but is still below the 101.00 percent forecast from briefing.com.

Next Friday the non-farm payroll report for November will be reported.

Fed watchers will pay close attention to the November employment data for signs about the health of the U.S. labor market in advance of the Fed’s upcoming policy meeting in mid December.

-Johnathan Schweitzer

 

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