Wall St struggles for direction after in-line monthly producer prices
Wall Street's main indexes edged lower in choppy trading on Thursday after monthly producer prices rose as expected, with investors awaiting Fed Chair Jerome Powell's comments later in the day for clues on the outlook for interest rates.
The producer price index (PPI) for final demand rose 0.2% on a monthly basis in October, in line with forecasts, though the annual rise of 2.4% was a touch higher than expectations.
Meanwhile, jobless claims dropped 4,000 to a seasonally adjusted 217,000 for the week ended Nov. 9, lower than forecast.
"The data continues to suggest that inflation and employment continue on their trajectory toward a soft landing," said Keith Buchanan, senior portfolio manager at Globalt Investments.
Buchanan, however, noted that if Treasury yields keep moving higher, that would be an indication the economy might not achieve a soft landing.
Changing inflation expectations are visible in the bond market, where the U.S. 10-year Treasury yield has ticked up to its highest since July.
Traders slightly trimmed bets on an interest rate cut at the Fed's December meeting. They now expect a 79.1% chance of a 25-basis point reduction from 82% prior to the data, according to the CME FedWatch tool.
The Dow Jones Industrial Average (.DJI), opens new tab fell 36.90 points, or 0.08%, to 43,921.29, the S&P 500 (.SPX), opens new tab lost 9.36 points, or 0.16%, to 5,976.02, and the Nasdaq Composite (.IXIC), opens new tab lost 34.83 points, or 0.18%, to 19,195.90.
Source: Reuters
