US Stocks Add To Losses On Worries About Interest Rates
10 February, 2018, 11:06 | Author: Dave Hampton
Stocks closed lower Wednesday, but not before swinging wildly to sharply higher and lower levels, as interest rates rose.
"We continue to argue that accelerating inflation, robust growth outlook and expansive financial conditions facilitate continued Fed rate hikes (we now expect four this year) and together with an increasing bond supply speaks in favor of higher USA rates", said Lina Fransson, fixed income strategist at SEB in Stockholm, in a note. Traders are now putting the chances of a 25 basis point hike by the Fed at its March meeting at 84.5 percent, according to Thomson Reuters data.
This could be the worst week for stocks since the financial crisis. "We've all enjoyed it", said Rich Guerrini, CEO of PNC Investments.
USA stocks pulled back on Wednesday after heavy selling lifted the 10-year Treasury yield back to 2.85%, matching a four-year high. The bond market is a decent indicator of fears about inflation.
Apple investigating exploding AirPod claim
His right Apple AirPod was emitting a steady flow of white smoke while Colon worked out to a dance music playlist. In 2016, Samsung recalled the Galaxy Note 7 after some phones caught fire because of a defect in the batteries .
Yet another Federal Reserve official said today that the central bank is not spooked by stock market fluctuations. "Is the bond market telling us something we don't know? A lot of people are groping around trying to find the cause of the equity sell-off and most people are pointing to expectations for higher bond yields", said Michael Schumacher, director of rate strategy at Wells Fargo. Crude slumped 3.5% on Friday and slipped below $60 a barrel for the first time this year.
Investors are weighing whether the sharp swings this week are the start of a deeper correction or just a temporary bump in the prolonged bull market. But with the yield topping 2.88 percent Thursday, and the S&P down 7 percent in the past week, stocks are already uncomfortable. That compares with $420 billion net a year ago in notes and bonds. Some stock strategists say the stock market may have found a near term bottom Wednesday but the volatility is expected to continue.
"At this point a lot of it is about risk assets", said Ian Lyngen, head of USA rates strategy at BMO Capital Markets in NY. "It can take two to three weeks to work through the system". "There was euphoria because there hadn't been a pullback", said Jeffrey Schulze, investment strategist at ClearBridge Investments.
Shares have headed south again on Wall Street.
Tom Brady wants to get paid like Jimmy Garoppolo, per report
It's official! Jimmy Garoppolo and the San Francisco 49ers have agreed to a record-breaking five-year, $137.5 million contract. After all, the best deals are always the ones that pay a premium for what a player will do rather than what he's already done.
New York Federal Reserve President Bill Dudley told Bloomberg News on Thursday that if the USA economy keeps getting stronger the central bank may be justified in raising rates four times this year. The U.S. Senate reached a bipartisan deal Wednesday that would boost spending limits by $300 billion over the next two years. The federal budget deficit could top $1 trillion in fiscal 2019, according to Bank of America.
On Tuesday, Wall Street staged a dramatic turnaround. Rates may have to go up to attract buyers for those bonds.
Despite the heavy losses this week, the Dow remains up 36% since Trump's election. His promises for big corporate tax cuts helped lift the Dow more than 8,000 points, though it has since given back about a quarter of that surge. Corporate earnings have never been higher, and US and global economic growth has gathered momentum. Brenner said the US yield was tethered to the German bund yield early Thursday, and both moved up together.
Google Pixel 2′s camera app does not use the Pixel Visual Core
Long criticised as a placebo, Google finally changed the way the button worked previous year ... to make it actually do something. But, you never know if Google decides to resort to Visual Core for faster HDR+ processing in the Google Camera app in the future.
On February 8th, as the House prepared to vote on the bill, she said she would not push Democrats to vote against it. In addition, the budget deal is focused on lifting budget caps in order to provide $659 billion for the Pentagon.
What is known about Tsvangirai's condition? President Emmerson Mnangagwa has hinted that Zimbabweans could go for polls by June. During his political struggle against ex-President Robert Mugabe , he was beaten and imprisoned numerous times.
In a CNN interview this week, Willoughby said her ex-husband asked her to release a statement to "downplay" the abuse allegations. A second White House official has resigned amid accusations of domestic violence, according to a report by The Washington Post .
Our security testing focused on whether basic security practices were being followed in the design of each television's software. Working with engineers from security firm Disconnect, Consumer Reports found the flaws rather easily.
Colombian defender Yerry Mina made his Barcelona debut on Thursday by replacing Gerard Pique late in the match. Barcelona are the only side to have ever reached five consecutive finals of the Copa del Rey cup.
Pence is set to lead the USA delegation to the opening ceremonies of the Winter Games in Pyeongchang, South Korea, Friday evening. Paul used a procedural move to stall the legislation - the result of a major bipartisan budget deal - from coming up for a vote.
Barnes notes that the Pennsylvania redistricting "might aid Democrats in their attempt to flip the House from Republican control". The Supreme Court approved new legislative districts for Guilford County that were drawn by a Stanford University law professor.
Police say they've shut down a major underground internet forum that helped cybercriminals steal over $530 million from victims. United States authorities believe as of March 2017 there were 10,901 registered members of the Infraud Organization.
Over 100 local football players attended the National Football Foundation's signing day breakfast at Norwood Hills Country Club. The son of the former National Football League player by the same name was considered the top unsigned prospect left to commit.
SPD party members will decide Germany's fate
If it's approved by Social Democratic members, she can keep governing from the political center with a partner she knows well. Under the coalition agreement , the SPD will retain control of the foreign, justice and labour ministries among others.
Apple's TV App Adds Direct Access to Live News Channels
On the main "Watch Now" tab, if you scroll past your "Up Next" queue and the top recommendations, there's a new "News" section. There will be a medal tracker and morning roundups so you can easily catch up with what you've missed overnight.
Former US Olympian Kukors accuses coach of abuse
That same year, coach Sean Hutchison faced an investigation over his ties to Kukors, but it was closed with no misconduct found. Hutchison, 46, said in a statement last month and resent to CNN on Friday that everything he did with Kukors was consensual.
Venom teaser trailer…doesn't actually show much of Venom
Fans have been dissecting every frame of Venom's first trailer today, looking for clues about the plot of the secretive project. That narrative pits Venom against the Life Foundation, a group that pushes the Venom symbiote to spawn several more variations.
CP3 leads Rockets to rout of defenseless Cavs
As a whole, Cleveland has been one of the worst defensive teams in the league and there has been very little cohesion overall. Tobias Harris scored 24 points in his team debut as the Los Angeles Clippers held off the Chicago Bulls for a 113-103 win.
Taken by her daughter!
Shortly after the picture was posted, a number of critics commented on Instagram , questioning her parenting skills. Some even lambasted Kim for sending a negative message about body image to her daughter.
Bangladesh ex-PM Khaleda Zia guilty of corruption
The motorcade of Zia moved nearly at snail's pace on the way to the court as her supporters gathered on a key road. According to the Daily Star , Zia was sentenced to 5 years of rigorous imprisonment by Special Court-5.