Markets retreat ahead of Powell's testimony as gold sets new record

Dow dropped 98, decliners slightly ahead of advancers & NAZ was off 27.  The MLP index wavered in the 276s & the REIT index was steady at 386.  Junk bond funds were essentially flat & Treasuries had selling which raised yields.  Oil slid lower in the 79s & gold shot up 15 to 2111, a new record!

AMJ (Alerian MLP Index tracking fund)

European regulators hit Apple (AAPL), a Dow stock, with a nearly $2B antitrust fine for "abusive" App Store rules related to music streaming providers.  The European Commission said it found that its banned music streaming app developers from fully informing iOS users about alternate & cheaper music subscription services.  "For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store," EU antitrust chief Margrethe Vestager said.  The regulators said AAPL's conduct may have led to iOS users paying "significantly higher" prices for music streaming subscriptions.  The EU competition enforcer said AAPL's restrictions constituted unfair trading conditions, a relatively novel argument in an antitrust case & also used by the Dutch antitrust agency in a decision against AAPL in 2021 in a case brought by dating app providers.  The EU regulator said it added an additional lump sum of €1.8B to the basic amount as a deterrent to AAPL & because a significant part of the harm caused by its conduct was non-monetary, but did not say what the basic amount was.  The stock retreated 4.82 (3%).

Apple hit with nearly $2B EU antitrust fine

Treasury yields were higher as investors considered the state of the economy & looked ahead to key economic data slated for this week.  The yield on the 10-year Treasury was almost 4 basis points higher at 4.229% & the 2-year Treasury  yield was last up by more than 5 basis points at 4.585%.  Yields & prices move in opposite directions & 1 basis point equals 0.01%.  Investors weighed the path ahead for the economy, including inflation, after recent data painted a somewhat mixed picture, & awaited fresh insights from the economy expected this week.  Last week, inflation expectations from consumers grew, according to the University of Michigan.  Investors have been looking to economic data for hints about not only the state of the economy, but also the outlook for Federal Reserve interest rates.  Many are hoping for rate cuts & are seeing data that suggests a cooling economy as an encouraging sign, while signals of persistent inflation are viewed as a signal that rate cuts may still be a way off.  Fresh insights will come this week in the form of labor market data, including JOLTs job openings figures, private payrolls data from ADP & the Feb jobs report.  Fed Chair Jerome Powell is also expected to provide testimony about monetary policy to the House of Representatives on Wed & to the Senate on Thurs.

Treasury yields rise as investors look ahead to Powell testimony and jobs data

Tesla (TSLA) raised prices on certain Model Y vehicles sold in the US market by $1,000.  The electric vehicle maker raised the price of its Model Y rear-wheel drive & long-range vehicles to $43,990 & $48,990, respectively.  Prices of the Model Y Performance variant & other models of the car remained unchanged as of Fri.  In Feb, TSLA temporarily cut prices of some of its Model Y cars in the US until Feb 29, nearly a month after it cut prices in Europe & China.  "This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal," CEO Elon Musk said last month when responding to a post from TSLA on X that indicated prices would go up in Mar.  Car buyers in the US have opted for hybrids over EVs in the past few months due to higher ownership costs & some EV models losing their eligibility for federal tax credits over battery sourcing requirements included in the Inflation Reduction Act.  In Jan, TSLA warned of "notably lower" sales growth this year as it focuses on the production of its next-generation electric vehicle, which is code-named "Redwood."  The latest price hike may help the company's margins, which were strained over the last year as the company & other EV-makers engaged in a price war that impacted its profitability in a bid to preserve market share.  The stock sank 11.90 (12%).

Tesla raises prices of some Model Y vehicles in US

Dow opened lower & continued in the red.  Major news this week should come from Federal Reserve Chair Jerome Powell's testimony before Congress along with the monthly jobs report.  Nervous investors took gold to a new record, above $2100.

Dow Jones Industrials