Alix we did text. Julie i am sure. I am just talking about the content. We are seeing a bounce. The dow gaining more than 100 likes as it looks investors shake off the jobs report from friday, trying to figure out the feds next move. They hope janet yellen will give them direction when she speaks in about half an hour. Though she may not give much direction. A commoditiesled rally. Oil prices bouncing. Our cultural commodities also on the rise. Up 15p 500, a big leg minutes after the open. It has remained steady ever since. Volume is low again. Down by 13 below the 20 day average. That is something to keep in mind. Going flipside of what is on with stocks, we have selling in treasuries. The yield on the 10 year going to 1. 37 area mostly declining yields as of late, so it is interesting to see a bounce. Prices are working their way higher after the head of Economic Development in abu dhabi says oil prices could barrel. 0 per alix hope or reality. So what are the gainers . Part of it is
Member wasonly one that dovish. Plus the committee now expects to raise rates at a slower pace to not only is the fed more dovish, but it has grown more dovish since the last meeting in april and remember from the minutes that most of voting members were ready to june as inflation continues to strengthen. Thef course we have disastrous jobs report and here is what the fed said. Andpace of improvement labor market has slowed. Inflation compensation declined. In other words, not enough to justify a rate hike the are notably, no mention in the policy statement of the grexit risk. The fed is on hold and giving no sign how soon it may move off of the quarterpoint p are we hope to in the press conference with janet yellen. That begins at 2 30. We have seen a major market move. Given me the data screens if you would. I want to show here at the moment on the screen. The market is up 84 and the vix plungers. That is a complacency that will support the fed. Michael mckee reversal. T goes right b
Is returning to a moderate pace. She said the fed needed to verify the expected acceleration in growth and now she isnt acknowledging that may not happen at all. Important change in language and important shift in tone for the fed and for janet yellen. The speech that she is about to couple contains a little of bombshells that help explain why. First, janet yellen now admits that Larry Summers and other prominent ecommerc economist my crisisperi t a post period may be here to stay. Admits the he also Financial Market volatility that has made it so far for the fed hard for the fed to control the economy and to raise rates is partly a consequence of what she calls accommodated Monetary Policy. Low rates can be selfdefeating. They indirectly create a barrier to higher rates. Finally, i like to draw your attention to the Monetary Policy report itself. Specifically to the section on Financial Stability. The fed says, one, stocks are getting expensive on a forward pe basis. They have not adj
Addressing his departure on twitter this morning. And brexit polls from the uk cant seem to lock down which way thursday will go. And then theres George Sorros issuing a major warning against a departure, even David Beckham is weighing in. But first up in about an hour from now on capitol hill fed chair yellen will kick off two days of semiannual testimony on Monetary Policy and the economy. Today its before the Senate Banking committee which is expected to grill her on everything from rates to brexit. Of course well bring you live coverage once the fed chair begins her remarks followed by the q a session with lawmakers. Some discussion it might be more contentious than usual even with her recent comments in the meeting last week. On both sides a lot of people saying get it over with. Admit things are weak and what are you going to do about it. What is she going to do about it . Its not up to her. Look at germany last quarter very interesting what the finance minister say. Look, we had
Pretty much at the highs of the day. We will be following the instant reaction in the markets to what the fed chair has to say about the path of Interest Rates. Steve, thats where we begin. Does the fed chair come out and definitively kill june . I dont think so. They never definitively kill anything or definitively green light anything. But common sense would say that they are going to wait until they see at least another months numbers because that number was so bad, they cant go at this point. So look, theres good news, bad news. The good news is that they will wait. The bad news is if its a real number, and we see that trend continue, it means the economy is falling back and thats really bad news. Pete, what does the trader want to hear today . Well, they want to get a little more clarity. All weve got is this job, job, hey we will probably do this, the economy looks so great its now also last week, on friday, everything changed. All of a sudden we start seeing these numbers that a