US Mortgage Applications Drop, Stocks Mixed Amid Government Shutdown
US mortgage applications and stock market today experienced mixed movements this week, with pharmaceutical stocks rallying and key economic indicators showing contrasting trends. The US government shutdown is causing ripples in asset markets.
Mortgage applications saw a significant drop, with the MBA's seasonally adjusted index falling -12.7%. The purchase mortgage sub-index dipped -1.0%, while the refinancing sub-index declined more sharply at -20.6%. Meanwhile, stock market today showed mixed performance. The S&P 500 Index and Nasdaq 100 Index both slipped slightly, by -0.08% and -0.02% respectively, while the Dow Jones Industrials Index inched up +0.06%.
Economic indicators painted a mixed picture. The September ISM manufacturing index rose more than expected to a 7-month high of 49.1, providing a boost to stock indexes. However, the September ADP employment change unexpectedly fell -32,000, indicating a slowdown in job growth. This news pushed the 10-year T-note yield down -4 bp to a 1.5-week low.
The US government shutdown is impacting markets, with a risk-off sentiment evident. The dollar index fell to a one-week low, and gold prices climbed to a record high. The shutdown may also delay crucial economic reports, including weekly jobless claims, monthly payroll reports, and inflation data scheduled for October 15.
Pharmaceutical stocks, however, rallied on hopes that Pfizer's deal with the US government could set a precedent for other pharmaceutical makers. December E-mini S&P futures and December E-mini Nasdaq futures both slipped slightly, by -0.05% and -0.03% respectively.
The US mortgage market and stock market today showed contrasting trends this week, with economic indicators sending mixed signals. The US government shutdown is causing uncertainty and delays in economic reports. Despite these developments, pharmaceutical stocks rallied on positive news. Investors will continue to monitor these trends and their potential impacts on the broader economy.
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