{"id":73356,"date":"2024-01-17T09:07:48","date_gmt":"2024-01-17T14:07:48","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=73356"},"modified":"2024-01-17T09:07:48","modified_gmt":"2024-01-17T14:07:48","slug":"coffee-with-greta-yields-continue-climbing","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2024\/01\/17\/coffee-with-greta-yields-continue-climbing\/","title":{"rendered":"Coffee With Greta: Yields Continue Climbing"},"content":{"rendered":"

Register now<\/a><\/strong> for today's free options trading webinar with David Prince after the market close!<\/p>\n

DJIA Futures: <\/b>-182 (-0.5%)<\/span><\/p>\n

SPX Futures: <\/b>-31 (-0.6%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-148 (-0.9%)<\/span><\/p>\n

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

Futures are lower as traders digest strong retail sales data and yields continue to climb.<\/span><\/p>\n

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

Retail Sales Beat Expectations<\/span><\/h2>\n

Consumer spending was stronger-than-expected during the key holiday shopping season.\u00a0<\/span><\/p>\n

The Commerce Department reported retail sales rose 0.6% in December to $709.9 billion.\u00a0<\/span><\/p>\n

That topped economists\u2019 expectations for a 0.4% increase.<\/span><\/p>\n

The strongest gains were at clothing retailers and online stores, where sales rose 1.5%.<\/span><\/p>\n

Sales increased 1.3% at general merchandise stores and 1.2% at car dealerships.\u00a0<\/span><\/p>\n

Gas station sales dropped 1.3% as prices continued to fall.\u00a0<\/span><\/p>\n

For the full-year, retail sales were up 5.6% compared to December 2022.\u00a0<\/span><\/p>\n

Excluding autos, retail sales rose 0.4% monthly vs 0.2% expected.\u00a0<\/span><\/p>\n

Yields Push Higher<\/span><\/h2>\n

Treasury yields are climbing further this morning as the market digests that new retail sales data and commentary from Fed officials.\u00a0<\/span><\/p>\n

The 10-year yield is up four basis points at 4.11% while the 2-year yield is up 11 basis points at 4.33%.<\/span><\/p>\n

Fed Governor Christopher Waller indicated on Tuesday that rate cuts may take longer to begin than the market has been anticipating.\u00a0<\/span><\/p>\n

He said, \u201cIn many previous cycles … the FOMC cut rates reactively and did so quickly and often by large amounts. This cycle, however, … I see no reason to move as quickly or cut as rapidly as in the past.\u201d<\/span><\/p>\n

CME Group\u2019s FedWatch Tool now shows around 57% of traders expecting the first cut at the March 20 meeting, down from around 65% earlier this month.\u00a0<\/span><\/p>\n

Mortgage Demand Surges<\/span><\/h2>\n

Mortgage demand rose sharply last week as lower rates attracted homebuyers.\u00a0<\/span><\/p>\n

The Mortgage Bankers Association reported total application volume jumped 10.4%.\u00a0<\/span><\/p>\n

Purchase applications rose 9% weekly but were still down 20% year over year.\u00a0<\/span><\/p>\n

Refinance applications rose 11% weekly and 10% annually.\u00a0<\/span><\/p>\n

The increase came as the average 30-year fixed contract rate fell to 6.75% from 6.81%.\u00a0<\/span><\/p>\n

Rates have moved slightly higher with yields this week though with Mortgage News Daily showing the current rate at 6.77%.<\/span><\/p>\n

Tesla Slashes Prices In Europe<\/span><\/h2>\n

Tesla <\/b>(TSLA) shares are falling 2.4% in premarket trade after cutting prices for its Model Y cars across several European countries.\u00a0<\/span><\/p>\n

The electric automaker lowered prices on its cars in Germany, France, Norway, and the Netherlands.\u00a0<\/span><\/p>\n

In Germany, the RWD Model Y now sells for 42,990 euros ($46,760.65), down 4.2% from its previous retail value.\u00a0<\/span><\/p>\n

The Model Y Long Range now costs 49,990 euros, down 8.1% from the previous price.<\/span><\/p>\n

Tesla lowered prices by as much as 6.7% in France, by up to 7.7% in the Netherlands, and between 5.6% and 7.1% in Norway.<\/span><\/p>\n

Judge Blocks JetBlue-Spirit Merger<\/span><\/h2>\n

Spirit Airlines <\/b>(SAVE) shares are tumbling 12.4% ahead of the open after a federal judge blocked <\/span>JetBlue Airways <\/b>(JBLU) proposed purchase of the discount airline on Tuesday.\u00a0<\/span><\/p>\n

JBLU shares are also down 0.6% and SAVE shares plummeted 47.1% on Tuesday.<\/span><\/p>\n

The U.S. District Court judge wrote, \u201cJetBlue plans to convert Spirit\u2019s planes to the JetBlue layout and charge JetBlue\u2019s higher average fares to its customers. The elimination of Spirit would harm cost-conscious travelers who rely on Spirit\u2019s low fares.\u201d<\/span><\/p>\n

The Justice Department sued to stop the merger claiming it would drive-up fares for consumers.\u00a0<\/span><\/p>\n

In response to the decision, the Attorney General said, \u201cToday\u2019s ruling is a victory for tens of millions of travelers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Register now for today’s free options trading webinar with David Prince after the market close! DJIA Futures: -182 (-0.5%) SPX Futures: -31 (-0.6%) NASDAQ Futures: -148 (-0.9%) Good morning friends! Futures are lower as traders digest strong retail sales data and yields continue to climb. Let\u2019s get right to it! Retail Sales Beat Expectations Consumer spending was stronger-than-expected during the key holiday shopping season.\u00a0 The Commerce Department reported retail sales rose 0.6% in December to $709.9 billion.\u00a0 That topped economists\u2019 expectations for a 0.4% increase. The strongest gains were at clothing retailers and online stores, where sales rose 1.5%. Sales increased 1.3% at general merchandise stores and 1.2% at car dealerships.\u00a0 Gas station sales dropped 1.3% as prices continued to fall.\u00a0 For the full-year, retail sales were up 5.6% compared to December 2022.\u00a0 Excluding autos, retail sales rose 0.4% monthly vs 0.2% expected.\u00a0 Yields Push Higher Treasury yields are climbing further this morning as the market digests that new retail sales data and commentary from Fed officials.\u00a0 The 10-year yield is up four basis points at 4.11% while the 2-year yield is up 11 basis points at 4.33%. Fed Governor Christopher Waller indicated on Tuesday that rate cuts may take longer to begin than the market has been anticipating.\u00a0 He said, \u201cIn many previous cycles … the FOMC cut rates reactively and did so quickly and often by large amounts. This cycle, however, … I see no reason to move as quickly or cut as rapidly as in the past.\u201d CME Group\u2019s FedWatch Tool now shows around 57% of traders expecting the first cut at the March 20 meeting, down from around 65% earlier this month.\u00a0 Mortgage Demand Surges Mortgage demand rose sharply last week as lower rates attracted homebuyers.\u00a0 The Mortgage Bankers Association reported total application volume jumped 10.4%.\u00a0 Purchase applications rose 9% weekly but were still down 20% year over year.\u00a0 Refinance applications rose 11% weekly and 10% annually.\u00a0 The increase came as the average 30-year fixed contract rate fell to 6.75% from 6.81%.\u00a0 Rates have moved slightly higher with yields this week though with Mortgage News Daily showing the current rate at 6.77%. Tesla Slashes Prices In Europe Tesla (TSLA) shares are falling 2.4% in premarket trade after cutting prices for its Model Y cars across several European countries.\u00a0 The electric automaker lowered prices on its cars in Germany, France, Norway, and the Netherlands.\u00a0 In Germany, the RWD Model Y now sells for 42,990 euros ($46,760.65), down 4.2% from its previous retail value.\u00a0 The Model Y Long Range now costs 49,990 euros, down 8.1% from the previous price. Tesla lowered prices by as much as 6.7% in France, by up to 7.7% in the Netherlands, and between 5.6% and 7.1% in Norway. Judge Blocks JetBlue-Spirit Merger Spirit Airlines (SAVE) shares are tumbling 12.4% ahead of the open after a federal judge blocked JetBlue Airways (JBLU) proposed purchase of the discount airline on Tuesday.\u00a0 JBLU shares are also down 0.6% and SAVE shares plummeted 47.1% on Tuesday. The U.S. District Court judge wrote, \u201cJetBlue plans to convert Spirit\u2019s planes to the JetBlue layout and charge JetBlue\u2019s higher average fares to its customers. The elimination of Spirit would harm cost-conscious travelers who rely on Spirit\u2019s low fares.\u201d The Justice Department sued to stop the merger claiming it would drive-up fares for consumers.\u00a0 In response to the decision, the Attorney General said, \u201cToday\u2019s ruling is a victory for tens of millions of travelers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward.\u201d<\/p>\n","protected":false},"author":41,"featured_media":73373,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-73356","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\/73356","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=73356"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73356\/revisions"}],"predecessor-version":[{"id":73374,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73356\/revisions\/73374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/73373"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=73356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=73356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=73356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}