Core PCE Advanced for Q3 comes in at 2.2% vs 2.1% estimate

• Prior quarter 2.8%
• Advanced Core PCE 2.2% vs 2.1% estimate
• PCE advanced 1.5% vs 2.5% prior
• Ex food and energy and housing 1.6% vs 2.3% prior
• PCE services ex Energy and housing 2.6% vs. 3.0% prior

The monthly PCE data will be released but the trend is to the downside. The headline PCE is below the 2.0% Fed target. The Core is also lower and closer to the 2.0% target at 2.2% (down from 2.8%). That is good news and supports the recalibration argument. The jobs report does not necessarily suggest that, however.

Looking at the markets:

• Dow industrial average is now lower by -55 points
• S&P index is up 3.3 points
• NASDAQ index is up 13 points

Looking at the US debt market:

• 2 year yield 4.151%, +3.3 basis points (at highs for the day)
• 5-year yield 4.118%, +1.4 basis points (at highs)
• 10 year yield 4.270%, -0.4 basis points
• 30-year yield 4.498%, -2.1 basis points

This article was written by Greg Michalowski at www.forexlive.com.