GMBStaff
16 Nov 23
Stock index futures were non-committal Thursday as traders waited for a busy morning of economic indicators. S&P, Nasdaq, and Dow futures saw minimal movement as traders anticipated the release of weekly jobless claims figures and the November Philly Fed index. Additional attention was on October in...
Stock index futures were non-committal Thursday as traders waited for a busy morning of economic indicators. S&P, Nasdaq, and Dow futures saw minimal movement as traders anticipated the release of weekly jobless claims figures and the November Philly Fed index. Additional attention was on October industrial production data, which was expected to show a monthly drop of 0.3%. The previous day's US retail sales data, described as unexciting, had prevented a continued bond market rally and dollar sell-off. The pattern of market expectations for a dovish pivot followed by swift unwinding was noted, with skepticism about future rate cuts. Comments from UBS and Deutsche Bank provided further context, with a broad perspective showing consumer goods demand tapering off as people prioritize entertainment over goods spending.
Weekly initial jobless claims figures arrived slightly ahead of expectations, rising to 228K compared to the forecasted 220K. Similarly, the November Philly Fed index fell to -15, below the anticipated -9. Industrial production for October dropped 0.4% on the month, surpassing the forecasted 0.3% decrease. The perspective shift towards spending on experiential activities over consumer goods was clearly reflected in the industrial production data, which exhibited the changing patterns in consumer behavior as explained by UBS's Paul Donovan. The skepticism emphasized in the first paragraph was reaffirmed by the release of economic indicators, showcasing the market's cautious approach amidst changing consumer preferences.