Markets were higher while yields fell

Dow rise 151 (near session highs), advancers over decliners 4-1 & NAZ went up 203.  The MLP index added 1+ to 187 & the REIT index bounced back 3+ to the 373s.  Junk bond funds fluctuated & Treasuries saw buying which reduced yields.  Oil fell 1+ to the 76s (first decline in 8 days) & gold slid back 3 to 2003 (more on both below).

AMJ (Alerian MLP Index tracking fund)

Uber (UBER) stock spiked after the ride-hailing company announced it will buy backup to $7B worth of company shares.  “Today’s authorization of our first-ever share repurchase program is a vote of confidence in the company’s strong financial momentum,” CFO Prashanth Mahendra-Rajah said.  He added that Uber “will be thoughtful as it relates to the pace of our buyback, beginning with actions that partially offset stock-based compensation, and working towards a consistent reduction in share count.”  The buyback news comes a week after UBER reported 4th-qtr results that beat earnings & revenue estimates.  CEO Dara Khosrowshahi called 2023 a year of “sustainable, profitable growth for Uber,” & said that a shift in consumer spending from retail to services has bolstered the company’s performance.  Its mobility segment revenue was up 34% from the year prior, & the delivery segment's revenue was up 6% from the year before.  The stock rose 10.15 (15%).

Uber stock pops more than 10% on $7 billion share buyback

Biogen (BIIB) 4th-qtr revenue & profit that shrank from a year ago, as it recorded charges related to dropping its controversial Alzheimer’s drug Aduhelm & as sales slumped in its multiple sclerosis therapies, its biggest drug category.  Sales were $2.39B for the qtr, down 6% from the same period a year ago & EPS was $1.71, down from $3.79, for the same period a year ago.  Adjusting for 1-time items, EPS was $2.95 per share.  EPS, both unadjusted & adjusted, saw a negative impact of 35¢ associated with previously disclosed costs of pulling Aduhelm, which had a polarizing approval & rollout in the US.  BIIB is cutting costs while pinning its hopes on its other Alzheimer’s drugs, including its closely watched treatment Leqembi & other newly launched products to replace declining revenue from its multiple sclerosis therapies.  It expects 2024 sales to decline by a low to mid-single digit percentage compared with last year.  But the company anticipates its pharmaceutical revenue, which includes product revenue & its 50% share of Leqembi sales, to be flat this year compared with 2023.  The stock fell 5.91 (3%).

Biogen revenue, profit shrink on Aduhelm costs, slumping sales of MS therapies

As mortgage rates inch lower towards the 6% mark, the real estate market is cooling.  Still, many homeowners still have low interest rates compared to the 6.66% they fell to last week.  Nearly 89% of borrowers have an interest rate below 6%, a Redfin study reports.  Just over 78% of borrowers have a rate below 5% while 59.5% have a rate below 4%.  Those lucky enough to have an interest rate below 3% fall to 22.6% of homeowners, Redfin reports.  With lower mortgage interest rates than current averages, it’s easy to understand why homeowners are weary of selling.  However, compared to 2022 when almost 93% of rates were below 6%, it's clear that some homeowners decided to sell anyway.  As rates continue to drop, the lock-rate effect that caused sellers to avoid selling the last few years will lessen & more listings will likely appear.  Many sellers are also realizing that it's unlikely rates will drop to their lowest levels any time soon.  "[Sellers are] also coming to terms with the fact that rates aren’t going back down to 3% any time soon, which makes it easier to pull the trigger on selling," David Palmer a Redfin Premier real estate agent in Seattle said.  "But a lot of sellers are worried about finding their next house because even though listings are rising, there’s still a housing shortage. That’s part of the reason so many sellers remain on the sidelines."

Nearly 89% of U.S. homeowners with mortgages have an interest rate below 6%: Redfin

Gold prices retreated for a 5th session, falling closer to the $2000 mark after hotter than expected US inflation in Jan elevated the $ & treasury yields, though both since gave up some of their gains.  Gold for Apr closed down $2 to settle at $2004 per ounce.  The drop comes after the US yesterday reported the Jan consumer price index rose more than expected last month, climbing 3.1% annualized, down from 3.4% in Dec but above expectations for a 2.9% rise.  The robust reading dashed hopes for a quick cut to US interest rates from the Federal Reserve, which is committed to returning inflation to its 2% target.  The $ was sharply higher yesterday, rising to a 3-month high following the reading, but moderated today, with the ICE dollar index last seen down 0.26 points to 104.7.  Treasury yields also eased after rising to 2-month highs yesterday.  The 2-year note was last seen down 8.4 basis points to 4.578%, while the 10-year note was paying 4.254%, down 6.3 basis points.

Gold Futures Fall Near the US$2,000 Mark, Dropping Again after Rate Cut Hoprs Dashed by Hot Inflation

West Texas Intermediate (WTI) crude oil closed lower for the first time in 8 sessions as a report showing an outsized rise in US inventories offset geopolitical tensions.  WTI crude for Mar closed down $1.23 to settle at $76.64 per barrel, while Apr Brent crude, the global benchmark, closed down $1.17 to $81.60.  The Energy Information Administration reported US oil inventories rose by 12M barrels last week, well ahead of the consensus estimate for a 2.6M barrel rise.  US oil production remained at a record 13.3M barrels last week, while gasoline & distillate inventories fell.  Prices had been climbing steadily as intl tensions run hot, with Israel continuing attacks on heavily populated areas of Gaza in its war on Hamas, while Ukraine continues to resist Russia's invasion & Yemen's Houthis attack Red Sea shipping.

WTI Crude Oil Falls for the First Time in Eight Days on a Big Rise in US inventories

Investors are adjusting to higher yields yields & possible delays in rate cuts.  The 10-year Treasury yield pulled back slightly today from the previous day's jump to trade around 4.27%.  In the meantime, the stock market has had a tremendous rally over a few months & remains overbought.  Reports on consumer spending & the producer price index are coming in the next 2 days.

Dow Jones Industrials