Economic data was on the light side today with just a reading on manufacturing activity across the nation. The national ISM Index came in at 56.4% in October, up from the September reading of 56.2%. It was the highest level in 2013 and has increased progressively each month since June. However, within the report the employment component fell by 2.2% to 53.2%.
The major Stock indexes have soared this year due in part to the massive stimulus program enacted by the Federal Reserve Bank. The S&P 500 is up 23%, the Nasdaq has gained 30% while the Dow Jones Industrial Average is up 19%. However, the Federal Reserve released its monetary policy statement this past Wednesday and said that the economy is improving, which could prompt the central bank to reduce its Bond buying efforts in December.
Government Sponsored Entity (GSE) Fannie Mae is suing 9 major barks in wake of the Libor scandal. The GSE is alleging that the banks, including Bank of America, JPMorgan Chase and Citigroup, manipulated the rate. Fannie Mae is seeking a total of $800 million in damages. Libor stands for London Inter-Bank Offered Rate and is the rate at which banks can borrow funds from other banks in the London interbank market.
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