Investor's Business Daily 2 hours, 44 minutes ago
Dollar index falls to record low
The greenback fell to a record low vs. a basket of currencies as well as the euro after Bank of America missed profit views on big and ongoing credit losses. It's the latest in a series of corporate, monetary and economic news raising concerns about U.S. growth, bettering the odds of further Fed rate cuts. The euro rose 0.88 cent to $1.4291. The yen rallied as risk-averse investors unwound carry trades.
N. Calif. home sales at 20-yr low
Sept. sales of new and existing homes in N. Calif. dropped to 5,014, down 31.3% vs. Aug. and 40.1% vs. a year earlier, DataQuick said. That's the lowest since the research firm began keeping records in 1988. DataQuick said Tue. that Sept. S. Calif. home sales dived 48.5% vs. a year ago to 12,455, also the lowest level recorded. Lenders cracked down on loans, especially "jumbo" mortgages for Calif.'s pricey homes.
Fed's Pianalto: housing 'very weak'
But jobs and output remain relatively firm, said Cleveland Fed President Sandra Pianalto. She said fin'l markets have stabilized since the Fed cut rates by 50 basis points on Sept. 18, but policymakers are ready to do more if needed. Inflation and inflation expectations are "moderate and well-anchored." Pianalto isn't a voting member of the FOMC in '07.
The 30-year fixed mortgage rate was flat at 6.4% this week, Freddie Mac said. The 15-year fixed rate rose 2 basis points to 6.08%; the 1-year adjustable climbed 3 ticks to 5.76%. With Treasury yields falling again, mortgage rates could retreat. Many Americans see recession
Almost half of Americans -- 46% -- feel the U.S. economy is in a recession, according to a poll by the CNN-Opinion Research Corp. 51% don't think the economy is in a slump. More than two-thirds of black citizens feel the country is in a recession vs. 42% of whites.
Leading indicators index up 0.3%
Sept. gains were in line with Wall St. forecasts. The data suggest continued economic growth over the next several months, but it's based on already-known indicators. Higher stock prices, lower jobless claims and better vendor performance fueled gains, while building permits were the big negative.