Stocks sank after a triple whammy of disappointing U.S. data. How disappointing was it? Even Europe dropped after the numbers came out at 8:30 a.m. EDT.
September retail sales and PPI both came in weaker than expected. October manufacturing activity in New York was poor too, falling short of estimates after posting its strongest pace in nearly five years last month.
September retail sales were troubling. Electronics had a nice pop, likely due to the release of the new iPhone, but everything else was disappointing. What happened? Isn't declining oil supposed to be a positive for retail sales? It is, but the big drop only occurred in October.
Most likely, there was a reverse wealth effect. Look what stocks did in September. The S&P was down 1.5 percent. There has been a lot of reliance on rising stock market prices as support for consumer spending. There is no wage and salary growth.