Concerns about Borrowing and Housing Market

  • Consumer companies slide as Treasury yields rise
  • Concerns about freeze in consumer borrowing and housing market
  • New weekly jobless claims hit nine-month high
  • Used home sales fall 2% in September to lowest rate in 13 years
  • Mortgage rates at highest level in decades
  • L’Oreal reports growth in third-quarter sales
  • EssilorLuxottica’s revenue growth slows in third quarter
  • Salvatore Ferragamo reports decline in sales for first nine months
  • Retail spending by consumers falls 1.1% from previous week

Factuality Level: 7
Justification: The article provides a mix of factual information and opinions from market analysts. The information about Treasury yields, jobless claims, home sales, and mortgage rates can be verified through official data sources. However, the opinions and statements from market analysts are subjective and may not be universally accepted as truth.

Noise Level: 3
Justification: The article provides relevant information about the impact of rising Treasury yields on consumer companies, the housing market, and retail spending. It includes quotes from experts and mentions specific data points to support its claims. However, it also includes some unrelated information about luxury firms and cosmetics companies that is not directly related to the main topic.

Financial Relevance: Yes
Financial Markets Impacted: Consumer companies, Treasury yields, housing market

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the impact of rising Treasury yields on consumer companies and the housing market. It mentions concerns about a freeze in consumer borrowing and declining sales in the housing market due to high interest rates. However, there is no mention of an extreme event.

Public Companies: L’Oreal (N/A), EssilorLuxottica (N/A), Salvatore Ferragamo (N/A), LVMH (N/A)
Private Companies:
Key People: Jerome Powell (Federal Reserve Chairman), Edward Moya (Senior Market Analyst at Oanda Group)

Consumer companies experienced a decline as Treasury yields rose, raising concerns about a freeze in consumer borrowing and the housing market. Federal Reserve Chairman Jerome Powell’s comments about the central bank’s attentiveness to a heated labor market and the possibility of more interest rate hikes added to the worries. Additionally, new weekly jobless claims hit a nine-month high, further increasing Treasury yields. The housing market also showed signs of weakness, with used home sales falling 2% in September to the lowest rate in 13 years. Mortgage rates, already at their highest level in decades, are expected to rise further. On a positive note, L’Oreal reported growth in third-quarter sales, while EssilorLuxottica’s revenue growth slowed and Salvatore Ferragamo reported a decline in sales for the first nine months of the year. Retail spending by consumers, excluding auto purchases, fell 1.1% from the previous week according to a survey from Bank of America Global Research.