Dow tumbled 574 near session lows, decliners over advancers 4-1 & NAZ slumped 145. The MLP index was off 1+ to the 228s & the REIT index dropped 8+ to the 378s. Junk bond funds remained mixed & Treasuries crawled high with limited gains for Treasury yields. Oil retreated 3 to the 77s & gold plummeted 36 to 1818 (more on both below).
AMJ (Alerian MLP Index tracking fund)
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The 2-year Treasury yield rose to its highest level since 2007 as investors assessed comments from Federal Reserve Chair Jerome Powell who said the central bank may need to increase the pace of interest rate hikes again. The 2-year Treasury yield hit a high of 4.968% soon after Powell's remarks, reaching its highest level since 2007. It was last trading more than 7 basis points higher at 4.97%. Meanwhile, the yield on the benchmark 10-year Treasury dipped nearly 4 basis points at 3.944% after briefly topping the key 4% level earlier in the session. Yields & prices have an inverted relationship & 1 basis point equals 0.01%. “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said in remarks prepared for2 appearances this week on Capitol Hill. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” Powell added. The Fed chair’s comments suggested to investors that the terminal level of the federal funds rate could be higher than previously indicated & that investors could expect a rate hike that is possibly larger than the most recent 25 basis point increase at the next policy meeting. Concerns about the pace of rate increases dragging the US economy into a recession have spread among investors & prompted many to hope for the Fed to pause rate hikes this year. However, in recent weeks, Fed officials have hinted that rates could go higher still & remain elevated for longer. That comes as the latest round of inflation data suggested that pressures from rising prices is continuing.
Hershey (HSY)
is joining the plant-based craze with new versions of its famous
Reese's Peanut Butter Cup & chocolate bars to be sold nationally this
month. The new chocolate treats will be made with oats instead of milk & will be the first vegan options offered by the chocolatier. "We
are excited to introduce these delicious, plant-based options," said
Teal Liu, brand manager of Better For You at HSY. "Our purpose
is to create more moments of goodness for consumers. Those moments are
now more accessible for chocolate lovers looking for plant-based
alternatives." Hershey has experimented with vegan chocolate
before . It sold an oat-based chocolate bar called Oat Made in some test
markets starting in 2021. However, the new products will be the first
sold throughout the US under the "Plant Based" label. HSY said consumers want choice & are looking for products they
consider healthier or with fewer ingredients, including reduced sugar & plant-based options. The new Reese's Plant Based Peanut Butter Cups are coming to store
shelves in Mar, followed by Hershey's Plant Based Extra Creamy with
Almonds & Sea Salt chocolate bar in Apr. The stock fell 1.54.
If you would like to learn more about HSY, click on this link:
club.ino.com/trend/analysis/stock/HSY_aid=CD3289&a_bid=6aeell5b6f7
Hershey jumps on plant-based craze with new Reese's Cups recipe
The US is in dire need of a "wake-up call," according to one retired 4-star general, as national security officials have possibly discovered another espionage threat from China. "This is part of the most comprehensive penetration of the United States in our entire history," strategic analyst Ret Gen Jack Keane said. "But given how massive China's penetration is, it's not surprising. And we got to have a wake-up call here in terms of what is really happening." Pentagon officials are reportedly investigating security concerns related to shipping & cargo cranes manufactured in China, then used at ports across America, to monitor US logistics operations. At issue are ship-to-shore cranes manufactured by ZPMC, a Chinese state-owned company that makes close to 80% of cranes currently in use at US ports, including some used by the US. military. American officials have voiced concerns about censors that could monitor US logistical operations as well as technology that allows the cranes to be remotely controlled, opening the door to potential disruptions to the American supply chain. Keane noted that Chinese Pres Xi Jinping wants to replace the US as a world superpower & to do that, must dominate economically & militarily. "China has the top advanced research centers in the world," the general said. "And as much as they steal our intellectual property, many people think that's the basis for their advancement, but no, that is part of the basis for their technological advancement. The other part is a huge investment in advanced research and how that is also advanced to them. Remember, they want to dominate technology-wise, and they're on a path to do that." The crane revelations come almost one month after national concerns about Chinese surveillance flights that traversed across the midland US, oversensitive military sites. Keane noted that the spy balloons "resonated" with Americans in terms of how comprehensive China's security penetration is.
Chinese 'spy cranes' part of the 'most comprehensive penetration' of US in history: Gen. Jack Keane
Gold futures settled sharply lower, at their lowest in more than a week. Federal Reserve Chair Jerome Powell's testimony to the Senate Banking Committee raised the possibility for a more aggressive pace of interest-rate hikes, strengthening the $ & pressuring $-denominated gold prices. Powell's testimony proves that the Fed's kryptonite can still sap gold's power. Gold for Apr fell $34 (1.9%) to settle at $1820 an ounce. That was the lowest most-active contract finish since Feb 24.
Gold futures end at lowest in over a week after Powell's Senate testimony
Crude-oil prices finished with a loss of more than 3%. Weaker-than-expected Chinese import data fueled uncertainty over energy demand, as Federal Reserve Chair Jerome Powell's testimony to the Senate Banking Committee left the door open for more aggressive interest-rate hikes. Apr West Texas Intermediate crude fell $2.88 to settle at $77.58 a barrel.
Oil futures settle more than 3% lower on demand uncertainty, Powell’s testimony
Powell said that interest rates are likely to go higher in the face of persistent inflation. Many investors have gotten addicted to low interest rates, so that message was not welcomed. As a result Dow is stuck in the mud, not able to attract bulls.
Dow Jones Industrials
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