From The Trading Floor: After a 2 day drop in the S&P 500, markets are in mixed to positive this morning after retail sales climbed more than forecast in October and as the consumer price index dropped reflecting cheaper energy, clothing and new cars
- The average number of mortgage applications fell 2.3% on a seasonally adjusted basis while interest rates remained somewhat steady from the previous week, the Mortgage Bankers Association said
- U.S. consumer prices unexpectedly fell in October and the annual inflation rate was the lowest in four years, which should give the Federal Reserve room to maintain bond purchases for a while. The Labor Department said on Wednesday its Consumer Price Index slipped 0.1 percent last month as gasoline prices fell sharply, after rising 0.2 percent in September
- Retail sales excluding automobiles, gasoline and building materials increased 0.5 percent last month after advancing 0.3 percent in September suggesting upside momentum in the economy early in the fourth quarter
- In a speech at The Economic Club of Washington D.C. Fed Chairman Bernanke emphasized plans to continue ultra-loose monetary policy and said the Fed would likely hold rates near zero well after the economy reaches the 6.5% unemployment rate that it has said is the threshold for considering a rate increase.
- U.S. October Existing Home Sales fell (-3.2%) to a 4 month low as limited supply and higher mortgage rates restrained previous momentum.
- Business Inventories rose by 0.6% for September
- The Fed releases the minutes from its 10/29-10/30 meeting at 2:00 pm est.
- Japanese exports rose at their fastest pace in three years, jumping 18.6% on year in October vs. 11.5% in September and beating consensus.
- As expected, the Bank of England's Monetary Policy Committee voted unanimously to keep interest rates at 0.5% and against more quantitative easing at a meeting earlier this month.
- Iran and the P5+1 world powers are due to meet again from today until Friday in an attempt to thrash out a deal in which the Persian nation would scale back its nuclear program in return for an easing of international sanctions.
- From a technical standpoint, resistance today looks to be at the 1994 / 1797 level with support at 1783 / 1786