Stock Market Update

The S&P 500 futures are down 36 points and are trading 0.6% below fair value, the Nasdaq 100 futures are down 216 points and are trading 0.9% below fair value, and the Dow Jones Industrial Average futures are down 180 points and are trading 0.9% below fair value.

The New York Fed Empire State Manufacturing Survey for November checked in at 31.2 (Briefing.com consensus 3.3) following a -11.9 reading for October. A number above 0.0 is indicative of expansion. The New Orders Index surged to 28.0 from -10.2.

The key takeaway from the report is that the November reading is the highest reading in nearly three years; moreover, firms remained optimistic that conditions would continue to improve in the months ahead.

Total retail sales increased 0.4% month-over-month in October (Briefing.com consensus 0.3%) following an upwardly revised 0.8% increase (from 0.4%) in September. Excluding autos, retail sales increased 0.1% month-over-month (Briefing.com consensus 0.2%) following an upwardly revised 1.0% increase (from 0.5%) in September.

The key takeaway from the report is that the upward revisions for September make the October results better than they appear since the growth is coming on top of a higher base. With month-over-month increases for nonstore retailers (+0.3%), food services and drinking places (+0.7%), electronics and appliance stores (+2.3%), and building materials and garden equipment and supplies dealers (+0.5%), it is clear that the consumer continues to embrace discretionary spending activity.

Import prices increased 0.3% month-over-month in October and were up 0.8% year-over-year. Excluding fuel, import prices were up 0.2% month-over-month and up 2.3% year-over-year. Export prices increased 0.8% month-over-month and were down 0.1% year-over-year. Excluding agricultural products, export prices jumped 0.6% month-over-month and were flat year-over-year.

The key takeaway from the report is that prices picked up on a monthly basis following declines in August and September.

Capacity utilization fell to 77.1% in October (Briefing.com consensus 77.3%) from 77.4% (revised from 77.5%) in September. Industrial production dropped 0.3% in October (Briefing.com consensus -0.3%) following a 0.5% decline in September (from -0.3%).