Dow fell 69, decliners over advancers 5-4 & NAZ gave back 124. The MLP index added 3 to 228 & the REIT index dropped 5+ to the 382 after a strong week. Junk bond funds fluctuated & Treasuries were heavily sold raising yields. Oil slid back to the 88s & gold rose another 5 to 1774 after recent strength.
AMJ (Alerian MLP index tracking fund)
Treasury yields climbed as markets scanned Federal Reserve speaker remarks & recent US inflation figures for hints about the central bank's policy plans. The yield on the policy-sensitive 2-year Treasury was 10 basis points higher at 4.431% & the benchmark 10-year Treasury yield was up by 5 basis points at 3.884%, remaining below the key 4% level. Both had plummeted on Thurs, dropping by around 30 & 32 basis points, respectively. Yields & prices move in opposite directions and one basis point is equivalent to 0.01%. Investors are closely watching remarks from Federal Reserve speakers for clues about the central bank's policy plans. Speaking at a conference in Sydney, Fed Governor Christopher Waller said that while the central bank would consider slowing interest rate hikes, there's still "a ways to go" before hikes can be paused. The central bank has been hiking interest rates to fight persistently high inflation. However, many investors fear that the pace of the hikes is leading the US economy into a recession.
Treasury yields rise as investors consider inflation outlook, future Fed policy
Taiwan is pushing to secure trade deals with the US & Britain despite China/s opposition to efforts to strengthen economic ties between Taiwan & other countries. The discussions come amid heightened tensions between the US & China that are expected to come into focus when Pres Biden & Chinese Pres Xi Jinping meet today on the sidelines of the G20 summit in Indonesia. China opposes efforts by Taiwan, a self-governing democracy that the ruling Chinese Communist Party regards as a breakaway province, to further its trade & diplomatic ties with other countries. Both the US & Britain lack formal diplomatic ties with Taiwan but have robust unofficial relationships with the Taiwanese gov. A spokesman for the Chinese Embassy accused the US of "wrongdoing" by pursuing the trade deal & added, "China is always against any country negotiating economic and trade agreements of sovereign implication or official nature with China’s Taiwan region." Officials from the US & Taiwan held 2 days of talks in New York as part of the US.-Taiwan Initiative on 21st-Century Trade, which is a bilateral companion to the Indo-Pacific Economic Framework for Prosperity the Biden administration announced over the summer with a dozen countries in the region.
Taiwan talks trade with US, Britain as China tensions loom over Biden-Xi meeting
Walt Disney (DIS), a Dow stock, is planning to freeze hiring & cut some jobs ahead of the winter holidays following a disappointing qtr. In the memo sent to employees, CEO Bob Chapek said the company would be moving forward with prioritizing cost-saving measures including "some staff reductions." "I
am fully aware this will be a difficult process for many of you and
your teams," Chapek wrote. "We are going to have to make tough and
uncomfortable decisions. But that is just what leadership requires, and I
thank you in advance for stepping up during this important time." "As we work through this evaluation process, we will look at every
avenue of operations and labor to find savings, and we do anticipate
some staff reductions as part of this review," Chapek added. The CEO also said the company would limit how many additional
staff it hired & that it was focused on only acquiring new staff in
the "most critical, business-driving positions." The stock rose 1.34.
If you would like to learn more about DIS, click on this link:
club.ino.com/trend/analysis/stock/DIS?a_aid=CD3289&a_bid=6ae5b6f7
Disney internal memo reveals massive shake up after dismal earnings
This is shaping up as a pause day for the stock market following last week's big advance. Interest rates are still high & look to be going higher, while threats of recession are on the minds of many traders.
Dow Jones Industrials
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