US Stocks Slip, Winning Streak for Nasdaq Snapped
US stocks were mixed at the open on Wednesday after the Nasdaq notched up a fresh 14-year high on Tuesday. Technology stocks are firing on all cylinders as traders ignore the weak data. Yields continue to remain subdued with the 10-year US yield hovering near the bottom end of the current range near 2.70%. Toward the end of the trading session stocks started to slip, as news was released that Homeland Security was monitoring air travel and treats that could be brought on board via passenger shoes.
U.S. economic data continues to show weakness, as traders shrug off weaker than expected number blaming the weather for the US’s economic ills. Housing starts in January tumbled 16.0% to an annual rate of 880,000 units, the lowest level since September, according to the Commerce Department. The percentage drop was the largest since February 2011. Starts for December were revised up to a 1.05 million-unit pace from the previously reported 999,000-unit rate. Economists polled had expected starts to fall to a 950,000-unit rate in January.
Building permits, a sign of future construction, fell 5.4% to an annual rate of 937,000 last month from December’s upwardly revised rate of 991,000.
The Labor Department released a new version of producer prices on Wednesday which adds services to the equation and reduces the overall weights of food and energy. The producer price index rose 0.2% from the previous month in January after gaining 0.1% in December. Excluding food and energy, prices were up 0.2% after remaining unchanged in December. Economists predicted both measures would rise 0.1%.The January numbers represent year-over-year increases of 1.2% and 1.3%, respectively.
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