Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.3%) and Nasdaq Composite (-0.8%) moved lower in response to the latest read on inflation.

Personal income increased 0.6% month-over-month in October (Briefing.com consensus 0.3%) following an unrevised 0.3% increase in September. Personal spending increased 0.4% (Briefing.com consensus 0.2%) following an upwardly revised 0.6% increase (from 0.5%) in September. The PCE Price Index was up 0.2%, as expected, and up 2.3% year-over-year versus 2.1% in September. The core PCE Price Index, which excludes food and energy, was up 0.3%, as expected, and up 2.8% year-over-year versus 2.7% in September.

The key takeaway from the report is the absence of disinflation in the PCE price indexes on a year-over-year basis. That wasn't necessarily a surprise given that the monthly readings were in-line with estimates, yet it will keep the Fed inclined to take a more gradual approach to cutting the target range for the fed funds rates.

Treasury yields moved higher in response. The 10-yr yield was at 4.25% before 10:00 ET, but sits at 4.27% now.

Separately, the weekly EIA Crude Oil Inventories showed a draw of 1.84 million barrels following a build of 545,000 last week.