U.S. Stocks Little Changed as Tech Slump Tempers Data (Bloomberg)
U.S. stocks were little changed, after yesterday’s decline, as a slump in technology shares tempered signs that a drop in China’s factory output is easing and America’s housing market is improving. “The market was encouraged by signs of stabilization in China,” and better-than-expected U.S. home sales data indicating that the housing recovery remains on track, said Alan Gayle, a senior strategist at RidgeWorth Capital Management. Yet, the market is still struggling and weighing weak corporate profits growth, he added.
Bank of America Sued for Alleged Mortgage Fraud (CNNMoney)
The Justice Department is seeking $1 billion from Bank of America, alleging the bank committed fraud by selling defective mortgages from a program that bank insiders called “the Hustle.” The government alleges the program was “intentionally designed to process loans at high speed and without quality checkpoints,” generating thousands of fraudulent and otherwise defective residential mortgage loans.
The Federal Reserve Says The US Economy Is Growing Moderately (Business Insider)
Information received since the Federal Open Market Committee met in September suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has advanced a bit more quickly, but growth in business fixed investment has slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level. Inflation recently picked up somewhat, reflecting higher energy prices. Longer-term inflation expectations have remained stable.