Led by the mega caps, equities fell on concern over tighter US curbs on chip sales to China, spurring a rout in the sector that has powered the advance since October. This news was unforeseen thus perhaps creating a selling vortex as ownership of this sector is at record highs. It is a very over … Read more
Bloomberg wrote yesterday The assassination attempt on former President Trump over the weekend has boosted his odds of winning the US election and may push traders to pile into sectors that stand to benefit the most from a Republican control the White House. The unprecedented nature of the attack will boost volatility and in the … Read more
Markets generally ignored the slightly higher than expected increase in July’s Producer Prices. The PPI rose 0.2% from the month earlier. Compared with a year ago, the PPI rose 2.6%. Stripping out food and energy, the core rate increased 0.4% from the month before and 3.0% from a year ago. As noted, both measures were … Read more
The CPI surprised nominally on the downside offering evidence that the Central Bank may be able to cut rates as soon as September. Briefly, the core CPI climbed 0.1% from May, the smallest advance since August 2021. The year-over-year measure rose 3.3%, also the slowest pace in more than three years. The Treasury market rallied … Read more
The second day of FRB Chair Powell’s Congressional Testimony was again largely a non-event. However, what might be of significance is his comment about the Fed’s balance sheet. Powell stated the Central Bank “has made quite a lot of progress. We think we have a good ways to go.” The Fed has reduced its holdings … Read more
FRB Chair Powell’s comments were largely a non-event. Powell stated, “more good data” would strengthen confidence that inflation is moving toward the central banks 2% target and “recent readings point to modest further progress on prices.” The Fed Chief further stated that lowering interest rates too little or too late could put the economy and … Read more
Will the election impact the markets? Historically turmoil in the Executive Branch increases volatility. According to Bloomberg, President Biden sent a 2-page letter to Democratic leaders and donors to quell Democratic infighting about his campaign, saying he is determined to remain in the race and challenging dissenters to end talk of his removal from the … Read more
Job openings unexpectedly rose in May, interrupting a months-long downtrend that underscored a gradual slowdown in labor demand. Available positions increased to 8.14 million form a downwardly revise 7.92 million reading in the prior month that was the lowest in three years. Both hiring and layoffs picked up in a sign of churn in the … Read more
Treasuries sold off even as the ISM data fell short of expectations. The sell off was blamed on the Supreme Court ruling that President Trump has some immunity from criminal charges for trying to reverse the 2020 election results, all but ensuring that a trail will not happen before the November election. The market is … Read more
Equites Friday were initially buoyed by a report that core PCE, the Fed’s preferred measure of underlying inflation slowed to the lowest level in May since March 2021 on a year over year basis. The report also indicated household spending rebounded and income showed solid growth. Moreover, consumer sentiment declined by less than initially estimated … Read more
