Stock Market Update

[BRIEFING.COM] The price-weighted Dow Jones Industrial Average (-0.2%) still underperforms compared to the market-cap weighted S&P 500 (+0.2%) and Nasdaq Composite (+0.5%).

Calm behavior in the Treasury market has acted as support for equities today. The 10-yr yield is down two basis points to 4.22% and the 2-yr yield is down three basis points to 4.06%. 

New home sales increased 4.4% month-over-month in September to a seasonally adjusted annual rate of 738,000 units (Briefing.com consensus 713,000) from a downwardly revised 709,000 (from 716,000) in August. On a year-over-year basis, new home sales were up 6.3%.

The key takeaway from the report is that new home sales, which are tabulated when contracts are signed, likely enjoyed a tailwind from the drop in mortgage rates seen in September ahead of the FOMC decision, but with rates higher now than they were before the September 18 rate cut, it is reasonable to think October new home sales won't look as good.