|Bid||113.69 x 1300|
|Ask||114.22 x 1300|
|Day's Range||113.42 - 113.95|
|52 Week Range||112.62 - 128.59|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||3.21|
|Expense Ratio (net)||0.15%|
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.
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Seana Smith to discuss the latest market moves.
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest market moves.
Yesterday, the Federal Reserve released the minutes from its September 25–26 meeting. Read When Will Fed Tightening Start to Hurt the US Economy? for a summary of the Fed’s actions at the meeting and the market’s reaction to them. The meeting minutes were slightly more hawkish than expected, and they signaled that most Fed officials believe that interest rates must continue to rise.
Gold, Miners Have Surged on the Market Rout—What’s the Upside? The Commodity Futures Trading Commission reports the positions of major players in the futures market in its COT (Commitment of Traders) report. It’s released every Friday and shows the open interest recorded on the previous Tuesday.
Does the Sell-Off Imply Market Repositioning for Lower Growth? One of the major market worries at the core of the current market sell-off is the coming earnings deceleration. The stock market rally in 2018 has been fueled in part by the tax reform windfall.
The US consumer price index (or CPI) for September was released today at 8:30 AM EST. The inflation numbers were weaker-than-expected, with the CPI rising just 0.1% sequentially compared to 0.2% expected by economists. In the 12 months through the end of September, the CPI rose 2.3%, which was lower than a 2.7% rise in August.
The Dow Jones Industrial Average Index (DIA) tumbled more than 800 points yesterday as Treasury yields (TLT) (AGG) continued their upward march. Rising bond yields and signs of firming inflation have spooked investors. Investors worry that because the era of near-zero rates has ended, companies’ margins might get squeezed.
The budget balance is the difference between what a country’s government garners from taxes and other sources and what it spends. A budget deficit occurs when spending exceeds earnings. In such a situation, the government borrows money from its citizens as well as foreign entities. As this debt accumulates, it’s possible that the value of its currency could decrease. The US (SPY) (VTI) budget deficit is creeping up.
The Fed’s interest rate hikes and outlook, trade war concerns, and relatively better US market (SPY) (QQQ) performance as compared to the rest of the world are the major factors driving the dollar up. This rise in the dollar has put sustained pressure on gold (GLD) and other precious metals year-to-date.
Stocks Spooked, Yields Collapse On Market Selloff By now the stock market selloff is old news. The good news is that bond yields (NYSEARCA:TLT) had a reprieve overnight as panic out of equities climaxed. Starting at 1:45pm yesterday just under 3 hours before market close, Treasury yields began to fall, reaching lows of 3.142% as […] The post Market Morning: Fed “Crazy”, Stock Market Crash, FAANGS Flabbergasted, Inflation Stats Due appeared first on Market Exclusive.
Increasing interest rates spooked investors again today as US stocks dropped sharply amid rising Treasury yields (TLT). The PPI (producer price index) increased 0.2% sequentially in September after an unexpected decline in August. The core PPI, which excludes food, energy, and trade services, rose 0.4%, which is its largest rise since January.
As we discussed previously in this series, the SPDR Gold Trust ETF (GLD) has fallen ~9.0% year-to-date and ~12.0% from its April peak. While gold prices have generally disappointed in 2018, there are many reasons to believe that this could be about to change and gold might be in the process of bottoming out. As we have discussed previously in the series, this buying is expected to continue going forward and with greater vigor, which should support gold prices.
Investors are keenly awaiting the US CPI (consumer price inflation) figures. The markets have placed huge importance on inflation figures (TIP) in 2018, as inflation has been one of the most important deciding factors related to the Fed’s future interest rate (TLT) path. The US CPI underwhelmed in August with a 0.2% rise sequentially compared to the 0.3% growth that was expected by economists.
Primary Dealers In Treasuries Flooded With Paper As US Auctions $74B This Week The Treasury will sell three-year, 10-year and 30-year bond supply this week, worth $74 billion. The benchmark U.S. 10-year Treasury note’s yield hit a seven-year high at 3.261 percent on Tuesday. Since the Treasury will finance the Federal budget deficit at any […] The post Market Morning: Flood of Paper, Valeant Shorter Targets Tesla, Super Micro Spyware, Google+ Kaput appeared first on Market Exclusive.
All eyes are peeled on U.S. Treasury bond yields. The equity market has now moved from a negative correlation into a purely positive one, moving in sync with bonds. The theory goes that as long as bonds are selling off, with yields moving higher gradually on the back of better economic growth, it is positive for risk assets -- and equities grind higher (negative correlation).
It seemed like a fairly mild, albeit negative day for the market until there was a big intraday reversal off the lows that produced a loud sigh of relief. For a while it looked particularly dire as the opening lows were breached and the selling accelerated.
Jeffrey Gundlach, CEO of DoubleLine Capital, said yesterday that US Treasury yields (TLT) are likely to rise further. During an interview with CNN, he said, “The US 10-Year yield could climb to 3.5% and the 30-Year rate could hit 4%.”
Price of Tea In China Falls 3%, or Rather Stocks What do equities have to do with the price of tea on China? Who knows, but Chinese stocks (NYSEARCA:FXI) are way down, over 3% as the new week starts off, and this despite the People’s Bank of China (PBOC) made a People’s decision to cut […] The post Market Morning: China Chafes, Bonds on the Block, Aramco Back On, Sears On Its Deathbed appeared first on Market Exclusive.
Is the Current Sell-Off a Blip—or the Start of a Downtrend? Federal Reserve Chair Jerome Powell’s speech did little to assuage investors’ concerns regarding the overheating of the US economy. Investors are worried that better-than-expected data could push the Fed to tighten its policy even more.
Bank stocks have been a tough trade this year. After surging in the first quarter of 2018, the group began a multi-month pullback as bank stocks continued to grind lower. Be it Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC) — you name it — the group has some similarities.
On October 3, US bond yields (BND) soared due to a bond sell-off. While the ten-year US Treasury Yield (TLT) (TNX) hit its highest level since 2011 yesterday, the 30-year US Treasury Yield (UBT) hit its highest level since 2014.
Treasury and investment-grade bond funds have broken down to multi-year lows following the Federal Reserve's eighth rate hike since December 2015, dropping them into long-term bear markets. Rising yields will now compete with equities and other asset classes for investor capital, waving red flags for the stock market's multi-year uptrend.