Stocks Take A Pause Near All-Time High Levels

Stocks Mixed Amid Profit-Taking

S&P 500 futures are swinging between gains and losses in premarket trading as traders take some profits off the table near all-time high levels.

Treasury yields remain under pressure after recent comments from Fed Vice Chair Richard Clarida, who stated that the Fed remained far away from raising interest rates.

It should be noted that Clarida’s comments were even more dovish than Powell’s, which is bullish for stocks and other riskier assets.

Producer Prices Grew By 0.4% In October

U.S. has just released Producer Prices report for October. The report indicated that Producer Prices increased by 0.6% month-over-month, in line with the analyst consensus. On a year-over-year basis, Producer Prices increased by 8.6%, while analysts expected that they would grow by 8.7%. Core Producer Prices grew by 0.4% month-over-month compared to analyst consensus which called for growth of 0.5%.

The reports indicated that inflation remained under control and may provide more support to stocks during today’s trading session.

Tomorrow, traders will have a chance to take a look at inflation data for October. Analysts expect that Inflation Rate increased by 0.6% month-over-month in October. On a year-over-year basis, Inflation Rate is projected to grow by 5.8%. Core Inflation Rate is expected to increase by 4.3% year-over-year.

U.S. Dollar Rebounds Despite Clarida’s Comments

The U.S. Dollar Index has recently made an attempt to settle below the 20 EMA at 93.95 but lost momentum and rebounded towards 94.10 as foreign exchange market traders bought the American currency after the pullback from yearly highs.

Interestingly, the recent dollar’s move had no impact on the gold market, and gold managed to get very close to the important resistance level at $1830. At this point, it looks that gold traders are focused on lower yields and are ready to ignore dollar’s strength, which is bullish for gold mining stocks.

For a look at all of today’s economic events, check out our economic calendar.