|Day's Range||3.18 - 3.22|
|52 Week Range||2.30 - 3.25|
Federal Reserve officials remain convinced that continuing to gradually increase interest rates is the best formula to preserve a steady economy, according to minutes released Wednesday of the central bank’s most recent policy meeting.
Finding the actual cause of heartburn is important, because it could lead to anything from indigestion to heart attack. Last week, stocks had a “heartburn week.” Knowing the cause will help understand whether this is indicative of “indigestion” (aka a correction) or a “heart attack” (aka a crash). Do you know why the S&P 500 (SPX) lost as much as 6.4%, the Nasdaq-100 (NDX) as much as 7.2%, and the Dow Jones Industrial Average (DJIA) as much as 6.2%?
NEW YORK (AP) — U.S. stocks are falling Thursday morning as interest rates resume their upward climb and several industrial companies post disappointing third-quarter results. Interest rates started rising a day ago after the Federal Reserve released minutes showing that a minority of its leaders think interest rates will need to keep rising to a level that slightly restricts economic growth. Slower economic growth would affect stocks because it means smaller corporate profits and less spending by consumers.
Rates for home loans edged lower in the most recent week, but a few basis points of financing relief won’t help the housing market as much as fresh inventory would.
Gold futures steadied in Thursday trading near the multimonth highs hit earlier this week, with moves in dollar trading subdued and cautious stock action propping up the precious metal.
Analysts at Imperial Capital cut their price target for Netflix Inc. to $464 from $494 on Thursday, citing rising interest rates that would result in future cash flows being discounted at a higher rate. The firm maintained its outperform rating, saying the slash in price target was "not because of anything fundamentally wrong with Netflix, but simply due to the back-up in rates." Treasury yields shot up to multiyear highs earlier in October. The 10-year Treasury note yield jumped to a seven-year high of 3.261% on Oct. 5, before retreating to 3.207% on Thursday, according to Tradeweb data. On Tuesday, Netflix reported earnings that beat expectations, sending shares of the company surging. Shares of the streaming giant have gained 90% in the year to date, while the S&P 500 has gained 5%.
Treasury prices extended their decline, pushing yields higher, on early Thursday trading as investors grapple with the implications of the minutes from the Federal Reserve’s meeting
U.S. government debt prices ticked lower ahead of more economic data, corporate earnings and amid investors digesting recent Fed minutes. The yield on the benchmark 10-year Treasury note was higher at around 3.211 percent at 4:30 a.m. ET , while the yield on the 30-year Treasury bond bond was higher at 3.377 percent. On the auction front, a $5 billion in 29-year-4-month Treasury Inflation Protected Security (TIPS) is set to be auctioned on Thursday.
At first sight, the minutes released Wednesday from the Sept. 25-26 meeting at which the Federal Open Market Committee agreed to raise their target for the federal funds rate by an additional quarter of a percentage point and continue with its established policy of quantitative tightening, or reducing its balance sheets assets, were a good case in point. The most interesting section of the minutes covered the issue of when the Fed should stop the hiking process and whether it should continue until rates are considered restrictive in that they restrain the economy, or stop when they are still neutral.
U.S. government bond yields rose on Wednesday after the Federal Reserve releases its minutes from its September meeting, which shows the central bank’s intent to raise rates gradually against a robust economic backdrop