Wednesday's Top Takeaways: Housing Market Pressures Build, China Exports Surge

Sam Vadas (0:02)

Welcome back to Market on Clothes. I'm Sam Vadas. At the New York Stock Exchange, here's some final thoughts on today's session. The latest mortgage data out this morning showed applications falling 2.7% for the week, ending October the 9th. Purchases fell 4% from a week earlier, but a 16% lower from a year ago, refinancing edged down 0.4% from the previous week. But it's down over 50% from a year ago, and it comes as US mortgage rates continue to rise. As I mentioned earlier, that 30-year fixed rate ticked up to 7.56% this morning. That's weighing on the outlook for the rest of the year, and particularly after that hotter than expected inflation put an October rate hike back in play.

Now China's export engine continues to roar. Outbound shipments grew 36% last month, as global demand for high-tech products continues to keep Chinese factories revved up. Shipments to here in the US were up 40%.

That's the fastest in five years. Imports, which are a key indicator of domestic demand also grew 31%. That's putting the trade surplus now back on track to leapfrog. It's $1.2 trillion record. While trade continues to drive growth over in China, the latest CPI data out of that country continues to show persistent weak domestic demand. Meantime, Chinese producer prices just rose to the hottest level in four years, as higher energy costs feed into the factory gate. Now, given China is a leading indicator for pipeline goods, this could offer some clues for the US PPI report tomorrow. Although, according to Kevin Green, who I just spoke to, obviously said it might not because of the fact that China can insulate its economy from some of those higher prices. But heading into tomorrow, obviously, we do have the producer prices in the morning. We'll get the retail sales. That should give us an idea of how consumption is holding up, given consumers are doing a very different thing to what they're saying right now. We'll also have TSMC earnings tonight. That's going to be the next big test for this AI trade. We do get clues from those monthly revenue numbers, but this will no doubt be closely recognised come tomorrow morning. That's going to do it here on Market on Close. I'm Sam Vadas. Thanks so much for watching. Be sure to download the Schwab Network app, available in the Apple App Store. Tune in 24-7 on schwabnetwork.com. We'll catch you tomorrow.