Index wasn the dramatic. That fed decision was more dovish than expected. Downw all those dots come from a weaker dollar, lower yields, higher stocks, but the markets could not hold on to their gains. One thing that did catch my eye was price action between the ratesensitive sectors. Utilities were declining ahead of the fed when yields were sinking. When bondto gain yields are falling, then get a huge bed when the fed dovish decision crushes yields. Werentrast, the financials a bigtime heading into the decision, then crashed. Market behavior you dont think you would see, but one reason financials mightve caught that bid is the yield curve. The 10 year yield fell by less than the two year yield, that is generally positive for Bank Net Interest margins. Joe lets take a look at those intraday charts, sharp moves with a twoyear yield, falling. 67 , close to the lowest levels this year. Obviously there is no market not looking for an imminent hike now. Lets take a quick look at the 10 year
Markets. The dow swings 300 points. But todays futures are pointing to higher open. A vote could throw the imme menation of the bailout in doubt. Japanese stocks closing in the red despite optimism for the bank of japan. Growth is returning but they will keep a watchful eye on china. The reaction by european stocks this morning is a negative one as you can see. Were seeing red particularly in italy down 1. 34. Now the reaction was sort of simulate yesterday in the u. S. We didnt see a rally, certainly. It was sort of mixed to down and we are expecting a bounce back today for u. S. Equities. The dow expected to open up about 10 basis points. S p similar and the nasdaq just above flat. For this negative reaction weve seen in europe and the u. S. Since the fed meeting yesterday bear in mind that were still in positive territory for the week as a whole and follows stronger performance last week as well. Yesterday a big bounce of volatility toward the end of trade after we saw the fed move
Rating to junk. The highest Interest Rates in nine years and a recession. There is a corruption involving petrobras, the state oil company. No more secondclass citizen status for apple tv. The settop box has taken a backseat to the iphone. Tom im buying one. Tim cook has unveiled a major upgrade. We believe the future of television is apps. In fact, this transition has already begun. We are spending more and more time on our computers and mobile devices, enjoying great tv content through apps, such as itunes and netflix and hulu. And bloombergtv, of course. There is also a bigger i cut design ipad design for business customers. Tom im buying one. [laughter] they dont like the iran deal, but they are not bound by the deadline because president obama has not given them details of side agreements. New York Governor Andrew Cuomo is prepared to support raising the states minimum wage to 15 per hour. He will make the announcement today during an appearance with Vice President joe biden. The
Its great. And for you, especially. It was your idea. Its great for all of us. Lets get you caught up on the business headlines this morning. Three big stories we are watching right now, oil prices are up plunge again. Main benchmarks trading at 5 1 2 year lows. Brent dipping below r50 for the First Time Since may 2011. The latest Oil Inventory data is out at 10 on 30 a. M. Today. The adp employment report is coming at 8 00 a. M. Eastern time. Then we go minutes from the latest fed meeting. And breaking news overnight, the tail of the missing airasia plane has been found in the java sea. It is the first confirmed sighting of the wreckage from the jet liner. This is notable because the flights black boxes are located in the planes tail. Jcpenney announcing its samestore sales lows. They say comps at the high end of its previous year. Microns revenue forecast mission wall street estimates. The memory chipmaker hurt by a drop in output as it upgraits grades production lines. Im not going
Action. It is encouraging. It shows that the program is credible but its obviously too early to tell. And what mattered for us was inflation. Saudi Arabias King Abdullah dies at age 90 following weeks of hospitalization for pneumonia. Hes immediately replaced by his brother sending oil shares higher. Telefonica is in talks with hutchison for 15 billion. Telefonica confirms its in talk with hutchison to sell its business for more than 15 billion and its payday for lloyd blankfein. He will join the crew on squawk box later this morning. You wont want to miss it. Manufacturing and purchasing managing index for major European Countries have been coming out today. We heard from germany. January pmi falling below 51. 7. Composite pui 52. 2. They cut it at the fastest rate in years. Not as bright as initially expected. The euro zone economy began in better shape than expected but firms were forced to slash prices. Thats a day after they announced the massive Bond Buying Program. The euro is d