Wholesale inventories fell 0.4 percent in the second estimate for October, down from a 0.2 percent draw in the first estimate. Price effects tied to petroleum, where inventories fell 6.8 pecent, were behind much of the headline draw and led to a 1.0 percent draw for nondurables. Inventories of durables edged 0.1 percent higher in October and 0.2 percent higher in September. Wholesale inventories of autos were unchanged in October and up 0.6 percent in September.

Sales at the wholesale level fell 1.3 percent in October, again pulled down by a 5.9 percent decline for petroleum. Sales of durables fell 0.5 percent pulled down by a 2.6 percent decline for autos.

The second estimate for October wholesale inventories is for a 0.2 percent decline which would be unchanged from the first estimate.

Wholesale trade measures the dollar value of sales made and inventories held by merchant wholesalers. It is a component of business sales and inventories.

Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers a slower rate of growth that won't lead to inflationary pressures. Wholesale sales and inventory data give investors a chance to look below the surface of the visible consumer economy. Activity at the wholesale level can be a precursor for consumer trends. In particular, by looking at the ratio of inventories to sales, investors can see how fast production will grow in coming months. For example, if inventory growth lags sales growth, then manufacturers will need to boost production lest product shortages occur. On the other hand, if unintended inventory accumulation occurs (i.e. sales did not meet expectations), then production will probably have to slow while those inventories are worked down. In this manner, the inventory data provide a valuable forward-looking tool for tracking the economy.