Dow added all of 1, decliners over advancers 3-2 & NAZ was off 1. The MLP index pulled back 2+ to 198 & the REIT index fell 1+ to the 451s. Junk bond funds did little & Treasuries were even ahead of Powell's testimony (more below). Oil rose in the 73s & gold declined 5 to 1777.
AMJ (Alerian MLP index tracking fund)
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Federal Reserve Chair Jerome Powell is slated to tell lawmakers today that while
inflation has risen "noticeably" in recent months, the US economy has
shown "sustained improvement" from the coronavirus pandemic. Powell, in prepared testimony for the Select Subcommittee on the
Coronavirus Crisis, will reiterate to lawmakers that an uptick in
consumer prices is due in part to a rebound in spending as the economy
reopens. "As these transitory supply effects abate, inflation is expected to drop back toward our longer-run goal," Powell will say. The
Fed head also painted a brighter economic outlook, citing widespread
vaccinations & unprecedented levels of monetary & policy support. Still, he will warn that risks remain, including the slowing pace of
vaccinations & new strains of COVID-19. "We at the Fed will do everything we can to support the economy for as long as it takes to complete the recovery," he will say.
Fed's Powell faces rate-hike questions amid inflation update
Existing-home sales fell for a 4th straight month in May as prices grew by the most on record. The number of contracts closed slipped 0.9% in May to a seasonally adjusted annual rate of 5.8M from 5.85ZM in Apr, according to the National Association of Realtors. The forecast had expected 5.72M contracts closed. The decline in contracts in May closed came as the median existing-home price surged by a record 23.6% year over year. "Home sales fell moderately in May and are now approaching pre-pandemic activity," said Lawrence Yun, NAR's chief economist. "Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market."
Existing-home sales fall for fourth straight month
The 10-year Treasury yield hovered around 1.50%, as investors awaited Federal Reserve Chair Jerome Powell's testimony to Congress on the central bank's response to the coronavirus pandemic. The yield on the benchmark 10-year Treasury note slipped a basis point lower at 1.48% today & the yield on the 30-year Treasury bond increased 1.1 basis points to 2.117%. Yields move inversely to prices & one basis point is 0.01%. Powell is set to speak before the House Select Subcommittee on Coronavirus Crisis at 2PM.
10-year Treasury yield hovers around 1.50% ahead of Fed Chair Powell's testimony
Everybody is eagerly waiting to hear what Powell has to say about inflation & future interest rates. As usual, his remarks will be bland, saying little about future events that are uncertain.
Dow Jones Industrials
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