Today’s disappointing economic data sent stocks and Treasury yields lower in early trading. Fed Chair Powell spoke this morning and reiterated the Fed doesn’t believe negative rates are an appropriate policy tool. The market disagreed and immediately priced in negative rates by June 2021. Investors remain on edge ahead of President Trump’s press conference on … Read more
Stocks started the day higher as investors are focused on a rapid recovery of the economy. Treasury yields started the day at their highest level in two months but reversed direction in early trading after today’s economic data showed there was no sign of a major recovery coming. Durable goods new orders fell -17.2% in … Read more
After rising in overnight trading again, stocks and Treasury yields fell in early trading with Treasury yields leading the move down. Crude oil continues to trade around $33 per barrel. Mortgage applications rose +2.7% from last week with purchase applications rising +8.6% and refinance applications falling -0.2%. Redbook same-store weekly retail sales fell -1.5% from … Read more
U.S. equity futures surged in thinly traded volumes on Monday and Tuesday nights as stock prices are behaving as if there will be no lasting economic damage from the Coronavirus shutdown. Treasury yields were slammed higher in pre-market trading, with 30-year Treasury yields once again holding overhead resistance just over 1.4%. The Chicago Fed National … Read more
Investors continue to believe monetary policy can raise asset prices and create inflation when there is no evidence to support it can do either. One of the most important aspects of monetary policy is belief. As long as investors believe monetary policy can raise asset prices and create inflation, they will invest accordingly, which in … Read more
Without any economic news to drive the markets today, stocks started the day lower. Treasury yields also fell in overnight trading and continued falling in early trading. With the stock market closed on Monday for Memorial Day, trading is expected to be light and uneventful today. The New York Fed announced started next week it … Read more
Stocks were flat in overnight trading even as preliminary factory surveys from the Eurozone showed further contraction and no sign of a “V” shaped recovery. After the U.S. economic data this morning, stocks headed lower. Treasury yields also fell in overnight trading and continued falling in early trading. Initial jobless claims missed expectations by coming … Read more
Stocks reversed yesterday’s loss in overnight trading and continued to rise in early trading as investors are hoping to find more clues from the Fed when the Fed releases it’s minutes from its last meeting later today. Treasury yields were up slightly in early trading. Mortgage applications fell -2.6% last week with purchase applications rising … Read more
Stocks traded slightly higher in early trading while Treasury yields were slowly following. Treasury Secretary Mnuchin and Fed Chair Powell testified to Congress today about the CARES Act, which had investors hoping Powell would provide forward guidance on monetary policy. Powell did indicate the Fed will likely be providing more liquidity in the future. Housing … Read more
Fed Chair Powell triggered the biggest buying spree in the history of the stock market as a record percentage of stocks on the New York Stock Exchange were bid higher following his interview on 60 Minutes last night where Powell claimed the Fed is printing money and can provide more monetary stimulus. Despite Powell’s claims, … Read more