{"id":64014,"date":"2022-09-27T08:53:52","date_gmt":"2022-09-27T12:53:52","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=64014"},"modified":"2022-09-27T08:55:52","modified_gmt":"2022-09-27T12:55:52","slug":"coffee-with-greta-stocks-bounce-bond-yields-dip","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/09\/27\/coffee-with-greta-stocks-bounce-bond-yields-dip\/","title":{"rendered":"Coffee With Greta: Stocks Bounce, Bond Yields Dip"},"content":{"rendered":"

DJIA Futures: <\/b>+331 (+1.1%)<\/span><\/p>\n

SPX Futures: <\/b>+53 (+1.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+191 (+1.7%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are up as the market bounces back from a severe sell-off.\u00a0<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Chicago Fed President Nervous About Going Too Far<\/span><\/h2>\n

Chicago Fed President Charles Evans told <\/span>CNBC<\/span><\/a> today that he\u2019s a bit nervous about going too far, too fast on interest rate hikes.\u00a0<\/span><\/p>\n

He said he\u2019s still \u201ccautiously optimistic\u201d the U.S. can avoid a recession through the Fed\u2019s battle against inflation.\u00a0<\/span><\/p>\n

His comments come after the Boston Fed President, Atlanta Fed President, and Cleveland Fed President all spoke at different events on Monday.\u00a0<\/span><\/p>\n

They all signaled the Fed will continue prioritizing aggressive action on inflation even if it causes pain for the economy.\u00a0<\/span><\/p>\n

Evans said he is \u201ca little nervous\u201d the Fed is not waiting long enough to assess the real impact of its interest rate hikes so far.\u00a0<\/span><\/p>\n

He said, \u201cThere are lags in monetary policy and we have moved expeditiously. We have done three 75 basis point increases in a row and there is a talk of more to get to that 4.25% to 4.5% by the end of the year, you\u2019re not leaving much time to sort of look at each monthly release.\u201d<\/span><\/p>\n

Treasury Yields Take a Breather<\/span><\/h2>\n

While stocks are bouncing higher, U.S. Treasury yields are pulling back.<\/span><\/p>\n

The 2-year yield is down 6 basis points today to 4.24%, after hitting a fresh 15-year record on Monday.\u00a0<\/span><\/p>\n

The 10-year yield is down 9 basis points to 3.83%, after soaring to the highest level since 2010 on Monday.<\/span><\/p>\n

Durable Goods Orders Dip<\/span><\/h2>\n

U.S. durable goods orders fell less than expected in August, dipping for the second straight month.\u00a0<\/span><\/p>\n

The Census Bureau reported durable goods orders fell 0.2% last month to $272.7 billion.\u00a0<\/span><\/p>\n

That was smaller than economists\u2019 expectations for a 0.5% decline.\u00a0<\/span><\/p>\n

Durable goods are products manufactured in the U.S. that are meant to last three years or more.\u00a0<\/span><\/p>\n

Transportation equipment led the overall decline, dropping 1.1% to $92 billion.\u00a0<\/span><\/p>\n

Excluding transportation, new orders rose 0.2%.\u00a0<\/span><\/p>\n

Excluding defense, new orders fell 0.9%.\u00a0<\/span><\/p>\n

Oil Bounce<\/span>s From 9-Month Low<\/span><\/h2>\n

Oil prices are bouncing back after hitting a 9-month low on Monday.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 1.6% to just under $78 bbl while Brent crude futures are up 1.8% to over $85.50 bbl.<\/span><\/p>\n

The jump comes as oil production in the Gulf of Mexico has been shutdown as Hurricane Ian approaches Florida.\u00a0<\/span><\/p>\n

Prices are also getting support from expectations that OPEC+ will cut its supply targets when it meets next week.\u00a0<\/span><\/p>\n

Coming Up: Home Price Data, New Home Sales, Consumer Confidence<\/span><\/h2>\n

The upcoming economic data of the day is focused on the slowing U.S. housing market.\u00a0<\/span><\/p>\n

The S&P Case-Shiller U.S. home price index and the FHFA U.S. home price index for July will both be out just after 9:00 a.m. ET.\u00a0<\/span><\/p>\n

The pace of home price growth has slowed dramatically in recent weeks as mortgage rates surge, putting pressure on\u00a0<\/span><\/p>\n

The Census Bureau will then report August new home sales at 10:00 a.m. ET.\u00a0<\/span><\/p>\n

That\u2019s expected to show the pace of new home sales slowed to 500,000 units last month from 511,000 in July.<\/span><\/p>\n

The Conference Board releases its September consumer confidence index at 10:00 a.m. ET.\u00a0<\/span><\/p>\n

That survey is expected to show an improvement to 104.5 from 103.2.\u00a0<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • The <\/span>Dow Jones <\/b>became the last major index to officially close in a bear market on Monday. The index closed 1.1% lower at 29,260.81, down more than 20% from its most recent record high. It\u2019s the first bear market for the blue-chip index since March 2020. The <\/span>S&P 500<\/b> meantime, notched a new closing low for the year dropping more than 1% to close at 3,655.04.\u00a0<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: +331 (+1.1%) SPX Futures: +53 (+1.4%) NASDAQ Futures: +191 (+1.7%) Good morning friends! Futures are up as the market bounces back from a severe sell-off.\u00a0 Let\u2019s get right to it! Chicago Fed President Nervous About Going Too Far Chicago Fed President Charles Evans told CNBC today that he\u2019s a bit nervous about going too far, too fast on interest rate hikes.\u00a0 He said he\u2019s still \u201ccautiously optimistic\u201d the U.S. can avoid a recession through the Fed\u2019s battle against inflation.\u00a0 His comments come after the Boston Fed President, Atlanta Fed President, and Cleveland Fed President all spoke at different events on Monday.\u00a0 They all signaled the Fed will continue prioritizing aggressive action on inflation even if it causes pain for the economy.\u00a0 Evans said he is \u201ca little nervous\u201d the Fed is not waiting long enough to assess the real impact of its interest rate hikes so far.\u00a0 He said, \u201cThere are lags in monetary policy and we have moved expeditiously. We have done three 75 basis point increases in a row and there is a talk of more to get to that 4.25% to 4.5% by the end of the year, you\u2019re not leaving much time to sort of look at each monthly release.\u201d Treasury Yields Take a Breather While stocks are bouncing higher, U.S. Treasury yields are pulling back. The 2-year yield is down 6 basis points today to 4.24%, after hitting a fresh 15-year record on Monday.\u00a0 The 10-year yield is down 9 basis points to 3.83%, after soaring to the highest level since 2010 on Monday. Durable Goods Orders Dip U.S. durable goods orders fell less than expected in August, dipping for the second straight month.\u00a0 The Census Bureau reported durable goods orders fell 0.2% last month to $272.7 billion.\u00a0 That was smaller than economists\u2019 expectations for a 0.5% decline.\u00a0 Durable goods are products manufactured in the U.S. that are meant to last three years or more.\u00a0 Transportation equipment led the overall decline, dropping 1.1% to $92 billion.\u00a0 Excluding transportation, new orders rose 0.2%.\u00a0 Excluding defense, new orders fell 0.9%.\u00a0 Oil Bounces From 9-Month Low Oil prices are bouncing back after hitting a 9-month low on Monday.\u00a0 West Texas Intermediate crude futures are up 1.6% to just under $78 bbl while Brent crude futures are up 1.8% to over $85.50 bbl. The jump comes as oil production in the Gulf of Mexico has been shutdown as Hurricane Ian approaches Florida.\u00a0 Prices are also getting support from expectations that OPEC+ will cut its supply targets when it meets next week.\u00a0 Coming Up: Home Price Data, New Home Sales, Consumer Confidence The upcoming economic data of the day is focused on the slowing U.S. housing market.\u00a0 The S&P Case-Shiller U.S. home price index and the FHFA U.S. home price index for July will both be out just after 9:00 a.m. ET.\u00a0 The pace of home price growth has slowed dramatically in recent weeks as mortgage rates surge, putting pressure on\u00a0 The Census Bureau will then report August new home sales at 10:00 a.m. ET.\u00a0 That\u2019s expected to show the pace of new home sales slowed to 500,000 units last month from 511,000 in July. The Conference Board releases its September consumer confidence index at 10:00 a.m. ET.\u00a0 That survey is expected to show an improvement to 104.5 from 103.2.\u00a0 In Case You Missed It The Dow Jones became the last major index to officially close in a bear market on Monday. The index closed 1.1% lower at 29,260.81, down more than 20% from its most recent record high. It\u2019s the first bear market for the blue-chip index since March 2020. The S&P 500 meantime, notched a new closing low for the year dropping more than 1% to close at 3,655.04.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":64016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-64014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=64014"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64014\/revisions"}],"predecessor-version":[{"id":64020,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64014\/revisions\/64020"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/64016"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=64014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=64014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=64014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}