Dow went up 50, advancers over decliners 4-3 & NAZ gained 77. The MLP index fell 6 to the 189s & the REIT index rose 4+ to 400. Junk bond funds fluctuated & Treasuries were bought heavily, reducing the yield on the 10 Year Treasury by 16 basis points to 3.14%. Oil dropped 5+ to the 105s & gold added 4 to 1842.
AMJ (Alerian MLP index tracking fund)
Federal Reserve Chair Jerome Powell told congressional lawmakers that the central bank is determined to bring down inflation & has the ability to make that happen. "At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so," the Fed chief said to the Senate Banking Committee. "We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses." Along with expressing resolve on inflation, Powell said economic conditions are generally favorable, with a strong labor market & persistently high demand. However, he acknowledged that inflation is running too hot & needs to come down. "Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2%," Powell added. "We anticipate that ongoing rate increases will be appropriate; the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy." He noted that the war in Ukraine & Covid-linked shutdowns in China are adding to inflation pressures, & added that the problem is not unique to the US but is affecting many global economies.
Powell tells Congress the Fed is ‘strongly committed’ to bringing down inflation
Treasury yields were lower as risk-off sentiment returned to global markets. The yield on the benchmark 10-year Treasury note was down at 3.203%, while the yield on the 30-year Treasury bond fell to 3.293%. Yields move inversely to prices. Concerns over a possible recession have weighed on investor sentiment in recent weeks. The Federal Reserve last week hiked interest rates by 75 basis points, its largest increase since 1994, as it looks to tame inflation running at a 40-year high, but aggressive tightening could mean exerting further downward pressure on growth. Recession fears have analysts divided over its likelihood, timing & scale. Market attention today will turn to Fed Chair Jerome Powell’s testimony before Congress.
10-year Treasury yield pulls back to 3.2% on recession worries
Moderna's (MRNA) COVID-19 variant vaccine
will be ready to ship in Aug as the company has been making shots
ahead of approval, CEO Stephane Bancel said, adding that the only bottleneck to supply was a regulatory
one. "Our goal is as early as August given we're going to file all the data
in June, by the end of June... hopefully in the August timeframe, the vaccine is authorised," Bancel said. "We can start shipping in the August timeframe. Some countries might be
September, but that will really be a regulatory decision. Because what
is (the) bottleneck now is regulatory. From a manufacturing standpoint, we are making the vaccine." The stock rose 7.01 (5%).
If you would like to learn more about MRNA, click on this link:
club.ino.com/trend/analysis/stock/MRNA?a_aid=CD3289&a_bid=6ae5b6f7
Moderna CEO: COVID variant vaccine to be ready for shipping in August
Stocks started the day lower, but buyers returned after Powell began his testimony. Trading will be heavily influenced by what he has to say before Congress.
Dow Jones Industrials
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