Financials lead market; rates bounce on expected shift in Fed
- Stocks are higher as money moves out of bonds following a report that
Fed chief Jerome Powell will unveil a major shift in the way the central
bank looks at inflation.
- The S&P is up 0.2% and the Dow is up 0.3%. The Nasdaq is lagging, as
it did yesterday, off 0.2%. The Dow may face some additional pressure
until it recalibrates and trades with three new stocks on Monday.
- Powell's Thursday speech from the virtual Jackson Hole gathering is
expected to introduce new measure, including inflation averaging, which
would let price gains run hotter than the 2% target.
- Nominal and real rates are climbing. The 10-year Treasury yield is
above 0.7%, nearly six basis points higher. The 10-year
inflation-protected
yield is up to -1.01%.
- Banks, which benefit from higher rates, are pushing the Financials
(NYSEARCA:XLF) up to the top of the sectors. Citi, BofA, Wells Fargo and
J.P. Morgan are all up more than 1%.
- Technology (NYSEARCA:XLK) is having trouble getting in gear for the
second day in a row. It's the weakest sector.
- The megacaps are mixed, with Facebook leading and Apple down more than
1%.
- In commodities, spot gold is off 0.2%, but crude futures are up nearly
2%.
|Today, 9:32 AM|1 Comment
- Stocks are higher as money moves out of bonds following a report that
Fed chief Jerome Powell will unveil a major shift in the way the central
bank looks at inflation.
- The S&P is up 0.2% and the Dow is up 0.3%. The Nasdaq is lagging, as
it did yesterday, off 0.2%. The Dow may face some additional pressure
until it recalibrates and trades with three new stocks on Monday.
- Powell's Thursday speech from the virtual Jackson Hole gathering is
expected to introduce new measure, including inflation averaging, which
would let price gains run hotter than the 2% target.
- Nominal and real rates are climbing. The 10-year Treasury yield is
above 0.7%, nearly six basis points higher. The 10-year
inflation-protected
yield is up to -1.01%.
- Banks, which benefit from higher rates, are pushing the Financials
(NYSEARCA:XLF) up to the top of the sectors. Citi, BofA, Wells Fargo and
J.P. Morgan are all up more than 1%.
- Technology (NYSEARCA:XLK) is having trouble getting in gear for the
second day in a row. It's the weakest sector.
- The megacaps are mixed, with Facebook leading and Apple down more than
1%.
- In commodities, spot gold is off 0.2%, but crude futures are up nearly
2%.
|Today, 9:32 AM|1 Comment
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