News You'll Use

This was a quiet week in terms of economic news until Thursday when we saw some new data on the Consumer Price Index (CPI) which came in lower than what economists were expecting. CPI is a popular measure of inflation, and with the miss on Thursday we saw a few analysts saying that inflation has peaked. From what we've heard from all the Fed speakers, we expect they will want to see a few months of inflation data that is moving lower before they take their foot off the pedal in terms of rate hikes. We're looking for more Fed members speaking next week, and we expect they will reiterate that one positive CPI number is not enough, so they will likely continue to fight inflation with more rate hikes.

• MBA Mortgage Applications fell again this week by 0.1%. This is the seventh consecutive week applications have fallen and the index is at the lowest since 1997.

• Midterm elections from Tuesday night are still too early to call. It appears the Republicans will have a slight majority in the House and it is too early to make a call on who won the Senate.

• US 10-year Treasury ended the week at 3.81% - On Thursday, the US 10-year Treasury fell 0.27% in yield (4.084% open vs 3.8125% close).

• CPI for October missed analysts' projections but still increased (+0.4%, core +0.3%).

• Initial jobless claims came-in close to analysts' projections (225k vs 220k).