Dow lost 194, advancers over decliners 4-3 & NAZ crawled up 14.  The MLP index was off 1 to the 227s & the REIT index pulled back 1+ to the 391s.  Junk bond funds were mixed & Treasuries  saw very buying & Treasury yields plunged.  Oil was up about 1 to the 81s & gold surged 55 to 1815 (more on both below).

AMJ (Alerian MLP Index tracking fund)

US manufacturing activity shrinks for first time since 2020

Inflation remains painfully high despite prices slightly cooling

Mortgage rates continued downward for a 3rd week, as the Federal Reserve's preferred inflation gauge showed prices cooled in Oct while still near a 4-decade high at 6% annually.  The Federal Reserve, while still likely to raise rates again in Dec, has become less hawkish on the extremity of the hikes.  The 30-year fixed-rate mortgage averaged 6.49%, down from 6.58% last week, according to Freddie Mac.  A year ago, the 30-year m m week when it averaged 5.90%.  A year ago, the 15-year FRM averaged 2.39%.FRM averaged 3.11%.  The 15-year fixed-rate mortgage averaged 5.76% also down from last week when it averaged 5.90%.  A year ago, the 15-year FRM averaged 2.39%.  "Even as rates decrease and house prices soften, economic uncertainty continues to limit homebuyer demand as we enter the last month of the year," said Sam Khater, chief economist at Freddie Mac.  Mortgage rates are still more than double what they were in early January, mirroring a sharp rise in the yield on the 10-year Treasury note.  The yield is influenced by a variety of factors, including global demand for Treasurys & investors’ expectations for future inflation, which heighten the prospect of rising interest rates overall.  The sharp rise in mortgage rates this year, combined with still-climbing home prices, have added hundreds of $s to monthly home loan payments relative to last year, when the average rate on a 30-year mortgage barely got up above 3% much of the time.  That's created a significant affordability hurdle for many would-be homebuyers, spurring this year’s housing market downturn. Last month, sales of previously occupied homes fell for the 9th consecutive month, hitting the slowest pre-pandemic annual sales pace in more than 10 years.

Mortgage rates decrease for third week in a row

Gold futures mark their highest settlement since August

Oil futures climbed, with US prices posting their highest settlement in 2 weeks.  Prices got a boost as China moved to ease some COVID-19 restrictions ahead of a meeting of major oil producers set for Sun.  With the apparent easing in China's COVID policy, the possibility that the Federal Reserve is going to slow its interest rate hikes, & the somewhat improved inflation news, it seems likely that OPEC+ will keep production steady.  US benchmark WTI crude for Jan rose 67¢ (0.8%) to settle at $81.22 a barrel, the highest finish for a front-month contract since Nov 17.

U.S. oil futures end at highest in 2 weeks

Dow Jones Industrials