Markets slide as inflation fears push benchmark Treasury yields higher

Dow rose 84, decliners over advancers 3-2 while & NAZ slid back 72.  The MLP index added 2+ to the 227s & the REIT index was steady in the 377s.  Junk bond funds were sold & Treasuries saw more selling, raising the yield on the 10 year treasury to 4.07% (more below).  Oil went up to the 78s & gold eased back 1 to 1843.

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Macy's (M) shares jumped, as the company said it drew holiday shoppers looking for gifts & held the line on promotions.  But the department store operator, which includes higher-end banner Bloomingdale's & beauty chain Bluemercury, said it is still planning for a choppier year ahead.  Macy's expects net sales to decline 1-3% in the fiscal year compared with 2022, which would translate to $23.7-$24.2B.  It expects its adjusted diluted EPS of $3.67-$4.11.  CEO Jeff Gennette said Macy's anticipates discretionary spending to remain under pressure as consumers “continue shifting towards services and essential goods.”  In the coming year, he said Macy's is focused on driving sales by refreshing its private brands, opening more off-mall stores & growing its luxury business & online marketplace.  EPS was $1.83, compared to $2.44 a share, a year earlier.  The company reported adjusted EPS of $1.88.  Excluding a tax benefit, it delivered adjusted EPS of $1.71, higher than the $1.57 that was expected.  Revenue fell nearly 5% from $8.67B a year earlier.  Comparable sales on an owned-plus-licensed basis were down 2.7% during the period from a year ago, but up 3.3% versus Q4-2019.  In the holiday qtr, Gennette said that the company was “competitive but measured in our promotions, took strategic markdowns and intentionally did not chase unprofitable sales.”  The stock rose 1.74 (9%).
If you would like to learn more about Macy's, click on this link:
club.ino.com/trend/analysis/stock/M_aid=CD3289&a_bid=6ae5b6f7

Macy's shares jump after holiday-quarter profit tops expectations

Treasury yields climbed as investors considered the prospect of further interest rate hikes by the Federal Reserve & awaited fresh economic data.  The yield on the benchmark 10-year Treasury was up by 6 basis points to 4.056%, trading above the 4% & the 2-year Treasury yield was trading at 4.929% (earlier in the session, it traded at its highest level since 2007).  Yields & prices have an inverted relationship & 1 basis point equals 0.01%.  Investors considered the likelihood of further interest rate hikes & rates staying higher for longer.  Yesterday, Atlanta Fed Pres Raphael Bostic said he believed rates would need to go higher still & remain elevated “well into 2024” as the battle with inflation continues.  Meanwhile, Minneapolis Fed Pres Neel Kashkari indicated that further interest rate increases could be on the horizon & that the Fed may accelerate the pace of rate hikes again.  Also, Feb's ISM Manufacturing Index came in at 47.7%, showing that economic activity in the sector contracted throughout the month.

2-year Treasury yield reaches highs not seen in more than a decade

Ford's (F) Feb sales increased by more than 20% from subdued results a year earlier, as the automaker ratchets up production of its F-Series pickups & electric vehicles.  The automaker reported Feb sales of 157K vehicles, up 22% from a year earlier & a 7.7% increase from Jan.  Ford's sales were hampered by supply chain problems in Feb 2022, making for one of its worst months since 2021.  Sales of the F-Series pickups jumped 22% last month compared with a year earlier, increasing to about 55K units, including 1336 units of its electric F-150 Lightning.  So far this year, sales of F-Series pickups are up 15%.  Its electric vehicle sales continue to increase, up 88% from a year earlier.  However, EV sales still only represent 2.9% of sales thru Feb.  Analysts estimate US auto sales last month were better than expected, reaching a seasonally adjusted selling rate of about 15M units.  Ford's Feb sales outpaced other automakers who reported monthly sales.  The automotive industry continues to navigate thru some supply chain & production issues, although the flow of parts & vehicle production this year is expected to be more consistent than in recent years.  The stock was up a penny.
If you would like to learn more about M, click on this link:
club.ino.com/trend/analysis/stock/M_aid=CD3289&a_bid=6ae5b6f7

Ford sales jump as supply chain issues improve

Rising interest rates are keeping the bulls away from the stock market.

Dow Jones Industrials