Equities shed 1% yesterday on heightened debt concerns following a Moody’s report voicing worry over the growing debt in the UK and the US. One hour before the opening bell, equity futures are on the rebound with the benchmark S&P 500 up 5.25 points to 1,095.
Commodities are also on the rebound as the US reverses course after appreciating against a basket of currencies yesterday. WTI Crude oil is trading $1.06 higher at $73.68 per barrel and Spot Gold is up $13.50 to $1,141.90.
In fresh numbers already released, mortgage applications rose 8.5% in the week ending December 4th, according to MBA. Purchase and refinancing activity both rose in the week as the average rate for a 30-year mortgage fell three tenths to 4.79%, the lowest rate mid-May.
Key Events Today:
10:00 ― Inventory reduction is expected to continue in October’s Wholesale Trade report, marking the 14th straight monthly slashing. The consensus looks for a 0.5% cutback after September’s 0.9% loss.
Analysta from Nomura note the ratio of inventories to sales volume “remains above pre-recession levels,” thereby implying that declines will continue to decline “for a few more months.”
- Treasury Auctions:
- 1:00 ― 10-Year Notes
