While markets came into the week quite overbought and needing a pullback, we want to see mild type pullbacks and this week was more than mild. Especially in light of not many catalysts with most earnings done with and most major economic reports off the table. Friday the S&P 500 fell 1.12% and the NASDAQ 1.54%; tech stocks were weak due to the Cisco report we mentioned yesterday. The major averages ended the week down more than 3.5%, their worst since the week ended August 21.
October retail sales showed an increase of 0.1%, below expectations of a 0.3% rise. Retail sales excluding automobiles, gasoline, building materials and food services rose 0.2%. Sales at auto dealerships fell 0.5 percent last month after rising 1.4 percent in September. The decline was surprising given that automakers reported strong sales for October. The producer price index for October fell 0.4%, after falling 0.5% the previous month.Continue reading