U.S. Business Inventories Preview U.S. Business Inventories Preview: The September business inventory data is out on Friday and should reveal an unchanged (median 0.1%) figure for inventories with shipments flat as well. This comes on the heels of respective August figures which had inventories unchanged and shipments down 0.6%. Data in line with this forecast would leave the I/S ratio steady at 1.37 from August, prior to that the ratio had held at 1.36 since March.
Treasury Action: yields resurfaced from lows Treasury Action: yields resurfaced from lows with stocks after easing following the 30-year sale, while the widening of the budget gap came in slightly beyond expectations. The 10-year yield rebounded from 2.30% to reclaim 2.32%, while the 2s-10s spread steadied at +144 bp.
Averages, internals deep in negative territory Stocks remain deep in negative territory and not far from session lows in afternoon trading. The Dow is the biggest loser, down almost 1%. Declining stocks are ahead of advancing stocks by 3:1 while down volume is ahead of up volume by almost 4:1. Oil prices remain under pressure and are near three month lows, with WTI crude trading near $42 per barrel.