Financial markets have been in a tight trading range for weeks as massive uncertainty from multiple areas simply prevents the market from gaining direction and purpose.
With the trade war with China, doubts on Fed policy for short-term rates, war in the Middle East, and the grand daddy of them all – possible impeachment of POTUS that is being conducted in an illegal manner, the markets want to go higher but just can’t or won’t.
We are at an inflection point; material positive or negative news will leave its mark on market direction for sure.
In economic news, the Market PMI Composite (Oct) came in at 51.2 vs 51.6 consensus estimate.
Services PMI (Oct) hit the estimate at 51.0.
Manufacturing PMI (Oct) rose to 51.5 vs 50.7 estimate, showing rising costs for producers.
New Home Sales Change hit estimates at -0.7% for Sept MoM.
New Home Sales MoM (Sept) were 0.701M, right at estimate as well.