|Day's Range||1.5560 - 1.5560|
|52 Week Range||1.4290 - 2.7590|
Earnings don’t move the overall market; it’s the Federal Reserve Board… focus on the central banks and focus on the movement of liquidity.
U.S. Treasury yields decline on Tuesday after investors began to see material signs of how U.S. companies would take time to hit full-capacity due to the COVID-19 epidemic
As the COVID-19 spreads and the patient count and death toll grow, economists are slashing their once-rosy expectations for global growth in 2020.
The combination of low inflation risk, solid growth outlook, and high earnings yields will keep driving stocks higher, argues one strategist.
It’s virtually certain the stock market over the next decade will not come anywhere close to equaling its historical total return of 6.9% annualized above inflation. The reason for this confidence: There are only a few ways in which the stock market can grow faster than the overall economy, and none of them appears likely. According to the Congressional Budget Office, real GDP in the U.S. is projected to grow at a 1.7% annualized pace through 2030.
More stimulus from the central banks is likely to provide longer-term support for gold prices, but over the short-run, gold is likely to be underpinned the most by falling Treasury yields and lower demand for risky assets.
The Dollar/Yen is trading lower as concerns over the impact of the coronavirus on China’s economy and the global supply chain are driving investors to seek protection in the Japanese Yen. There wasn’t any fresh economic data released on Tuesday, but a production warning from Apple highlighted the mounting economic costs of the coronavirus and spooked global stock market investors. At 10:54 GMT, the USD/JPY is trading 109.720, down 0.169 or -0.16%.
U.S. financial markets are closed on Monday, Feb. 17, in observance of Presidents Day. The New York Stock Exchange and Nasdaq are shut down, and the Securities Industry and Financial Markets Association, or Sifma, is recommending no trading in dollar-denominated debt, which includes money markets and U.S. Treasurys. The S&P 500 (SPX)and Dow Jones Industrial Average (DJIA)were both less than a percentage point away from their respective record closes on Friday, while the 10-year Treasury note yield (BX:TMUBMUSD10Y)traded around 1.59% at last check.
U.S. Treasury yields grind lower Friday, capping off a turbulent week of trading, after a weaker-than-expected retail sales number points to potential cracks in a longstanding pillar of the economy.
Shares of real estate investment trusts rallied again Friday, as another drop in Treasury yields helped spark a broad rally in the high-yielding sector. The SPDR Real Estate Select Sector ETF rose 0.8%, with 25 of 31 equity components gaining ground. The ETF (XLRE) was on track for a 7th-straight gain, and 5th-straight record close. The win streak would be the longest since the 7-day up stretch ending Jan. 31, 2019. The REIT sector is viewed by many as a bond proxy, given its relatively stable equity characteristics and high dividend yield. The XLRE's dividend yield is 2.84%, while the yield on the 10-year Treasury note was 1.581%, down 3.6 basis points from Thursday. The 10-year yield has lost 33.8 basis points since the end of 2019, and was approaching the 3-year low of 1.459% hit on Sept. 4, 2019. Meanwhile, the implied yield on the S&P 500 was 1.79%. Among the XLRE's biggest gainers Friday, shares of Digital Realty Trust Inc. rose 3.1%, Public Storage advanced 1.8% and Extra Space Storage Inc. tacked on 1.7%.
Investor demand for bonds shows few signs of fading. BofA Global Research reported that bond funds had recorded $23.6 billion of inflows in the seven-day period ending in Feb. 12, citing data from EPFR Global. This would represent the biggest inflows since 2001.
Retail sales in the U.S. rose modestly in January as Americans spent more money eating out and furnishing their homes, but spending was relatively soft at the start of the new year. Retail sales climbed 0.3% last month.
Business inventories in the U.S. rose a slight 0.1% in December after a 0.2% decline in the prior month, the Commerce Department said Friday. The gain was in line with Wall Street expectations. Sales slumped 0.1% in the month. Retailer sales were flat. The ratio of inventories to sales, meanwhile, inched up to 1.40 in December from 1.39 in the prior month. That's how many months it would take to sell all the inventory on hand. One year ago, the inventory-to-sales ratio was 1.39. A smaller gain in inventories in the fourth-quarter relative to the July-September period subtracted 1.1 percentage points from GDP growth.
BlackRock says the time has come for bond fund managers to adopt data-driven investing techniques, not only to better understand how to further boost returns, but to uncover where risks may hide in their portfolios.
U.S. Treasury yields fall Thursday after China reported a sharp jump in the confirmed cases of COVID-19 and deaths from the viral outbreak, renewing appetite for government paper which have sold off over the last two sessions.
Oil prices and Treasury yields, which are dangerously close to fresh 52-week lows. Both are extremely economically sensitive, and both indicate the coronavirus will cause economic harm around the world.
The cost of staples such as rent, medical care and prepared food rose in January to push consumer prices higher, but inflation more broadly was still relatively tame. The consumer price index edged up 0.1% last month.
The number of Americans who applied for unemployment benefits in early February rose slightly, but there’s still no sign of widespread layoffs in an economy that has been expanding for a record 10 and a half years. Initial jobless claims edged up by 2,000 to 205,000.
“The real question for the Fed is: What is the likely effect on the U.S. economy? And I think we’ll begin to see that in economic data coming up fairly soon.
The Hubei Coronavirus update headline has initially hit like a ton of bricks given this is one of the market’s biggest fears.
U.S. Treasury yields rise Wednesday as hopes that a slowdown in the cases of COVID-19 weighs on haven demand, amid a global stock rally.
Federal Reserve Chairman Jerome Powell said Wednesday the central bank will use its quantitative easing tool aggressively to combat the next recession.
Agilian Technology is reopening one of its three factories in China after an extended period of shutdown due to the coronavirus outbreak. Its executive vice president Renaud Anjoran joins Yahoo Finance's Seana Smith on The Ticker to discuss.