Economic Update - Retail Data
Stocks are mostly red today as investors digest the latest round of economic data. Stocks had been rallying after both the consumer and producer price reports were better than expected last week. Retail stocks are falling this morning as inflation is expected to impact the holiday shopping season.

For economic data today, retail sales are up 1.3% in Oct, expectations were 1.2%. Core sales were also up 1.3%, outpacing expectations of 0.5%. The control group, which most closely resembles the consumer spending component of GDP, rose 0.7%, beating expectations of 0.3%.

Industrial production unexpectedly fell 0.1% in Oct, versus expectations of a 0.1% increase. Manufacturing edged 0.1% higher, its 4th straight monthly increase. Capacity utilization fell to 79.9%, the first time below 80% since June.

Rounding out economic data, the NAHB Housing Market Index dropped 5 points to a reading of 33 in Nov, the lowest level since June 2012 with the exception of the start of Covid-19. All 3 components fell at least 4 points. Lastly, import prices fell 0.2% in Oct and are up 4.2% over the past year. Export prices fell 0.3% for the month and are up 6.9% over the past year.

Treasury yields are flatter, with the 2-year T yield up 0.4 basis points to 4.37%, the 5-year T yield down 4.7 basis points to 3.87%, and the 10-year T yield down 5.9 basis points to 3.74%. Shorter-term advance rates are mostly higher, while longer-term rates are lower today.image
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