Dallas Fed Manufacturing Index Report Below Analysts' Expectations
The latest manufacturing index report released by the Dallas Fed showed that its index rose from -9.0 in September to -3.0 in October, but was lower than the -1 expected by analysts.
On October 28, the Federal Reserve Bank of Dallas released its latest manufacturing index report.
The report showed that the Dallas Federal Manufacturing Index rose from -9.0 in September to -3.0 in October, while analysts expected -1. The company outlook index improved from -6.4 to -3.3, but it was still in negative territory.
The production index rebounded from -3.2 in September to +14.6 in October, indicating an increase in factory activity in Texas. The new orders index also improved from -5.2 to -3.7, while capacity utilization increased from -7.0 to +4.3.
Bond traders' reaction to the report pushed Treasury yields to continue to rise. The two-year Treasury yield stabilized above 4.12%, and the ten-year Treasury yield climbed above 4.25%.
Despite the rise in Treasury yields, the US dollar index retreated and is currently trying to stabilize below 104.20. Overall, foreign exchange traders took profits near multi-month highs.
Gold prices are trying to climb back above $2,745 as traders focus on a pullback in the U.S. dollar.
The S&P 500 rose despite a weaker-than-expected Dallas Fed manufacturing index. Rising Treasury yields did not weigh on stocks as traders seemed more focused on a strong sell-off in the oil market.
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