That's the flip side of this. |
The fact that oil broke close to US$60 today caused a drop in S&P 500 energy stocks. |
The headline thing today is oil. It's within striking distance of a new high. It adds more fear about how much the economy could slow. |
There's a fairly consistent theme running through all of the markets, which is tied to the idea that the Fed is nearing the end of the tightening cycle. It was the combo that the Fed's almost done and the import price number was down. |
There's a fairly consistent theme running through all of the markets, which is tied to the idea that the Fed is nearing the end of the tightening cycle. It was the combo that the Fed's done and the import price number was down. |
Thus far, the Fed seemingly has no bite. Normally, when the Fed has raised short-term rates, long-term yields have also risen. Not this time. |
We might see a little pause for assessment on stocks next week ahead of the jobs report. From now on, stocks will rise only if investors continue to believe, just like the Fed, that the economy is solid and may absorb higher rates. |
What little earnings reports we have had have been a little bit more disappointing than outperforming, for the most part, so that's weighing. |
What little earnings reports we have had have been a little bit more disappointing than outperforming. |
When I look around the globe outside the United States I see nothing but a huge bull market going on wherever you look. We're sitting here in the United States and looking at flattish markets and thinking things are not so good. |
When you look through the vast majority of reports - even the ones that are bad - what you see is the undertow is still pretty strong. |
Yields seem to have found a high. Taking bond yields up every day has been a tough one for the stock market, and the fact it would pause is good news at least in short run for stocks. |
You certainly see a market throughout which is reflecting rate worries. |
You've got commodity prices and the cyclical stocks getting hit and all of that happens when people start to question whether the interest rates are biting. |
You've got some real core pressure in the pipeline. By and large that certainly is going to fan a little inflation fear here. |