Fed's beige book shows economic activity increased at slight to modest pace in most districts

Summary

CNBC's Rick Santelli reports on the Federal Reserve's Beige Book, which described slight-to-modest growth, prices, and wages across most districts and pointed to a K-shaped consumer economy. He notes that fed funds futures show almost no chance of a January rate cut, while Treasury yields and the dollar show little reaction. Santelli also tracks the Dow's recovery from its earlier decline and suggests stocks may be reversing oversold conditions.

• Fed Beige Book described slight-to-modest growth, prices, and wages.
• Beige Book pointed to a K-shaped economy, with affluent consumers spending on luxury and travel while lower-income consumers are price-sensitive.
• Fed funds futures priced virtually no chance of a January rate cut.
• PPI came in hot, but the market largely ignored it.
• Two-year yields hovered near 3.51% and 10-year yields near 4.13%.
• The dollar index returned to roughly unchanged.
• The Dow recovered from down about 230 points to down about 152 points.
• Santelli suggested the stock market may be reversing some oversold selling.