It sums up everything that you need to know in the markets. Equities are down, which means you are getting a flock into full faith and credit. You are getting massive dollar weakness for three straight days. The weakest we have seen on the dollar since 2018. The story of the week, all about gold. Investors watching back in as a hedge against low rates. Big concern about the trajectory of this economy. As i mentioned, some of that trajectory is coming from the fed. They are extending most of their emergency Lending Program until the end of the year in an effort to support the economy amid the pandemic. The fomc kicks off their twoday meeting in washington with a Rate Decision due tomorrow. We are joined by Kevin Nicholson riverfront investment group, Global Fixed Income ceo. I love days like this where i can get a fixed income guy talk about equities. You are talking about the tactical favoring of equities. How much is relative value, where a dividend yield is worth it to basis points o
The dollar index just below 97. Crude oil rallying 2 today on stocks going higher. 87. Arrel of wti 37. Lets get more on the markets. Scarlet fu is with us. Scarlet jay powell testifying before congress for two days of discussion, stuck with his message that the economys path is uncertain. We have seen indexes come off of line isghs but the positive. You look at the industry groups, 20 groups are higher. Within the dow, 29 out of the 30 names are up. In terms of leaders, caterpillar, boeing. The white house is preparing a 1 trillion infrastructure proposal. Up 4 frastructure etf right now reflecting higher demand. Retail is up after a record gain in sales. A lot of retail names are heavily shorted, so you could be seeing a short squeeze as investors rushed to cover their bets. All of it comes back to fundamentals, like earnings. Morgan stanley talked about the disconnect between the optimism out there and the bottom line. Andgap between the s p 500 as aftertax profits has soared to rec
Program two years ago, but lower courts blocked the move. Police in hong kong more the city is on the brink of a total breakdown. For a second day, they fired tear gas in the financial district and battle with protesters. Clashes continued late into tuesday evening. Protesters have called for more disruption to the citys Transit System on wednesday morning. While fires are burning at emergency level intensity across australias most populous state and into sydney suburbs. Authorities have warned most people in the path of the flames that there is no longer time to bleed. Flee. The world me a Logical Association classifies this as a , is atophic fire morning the top of the danger scale in australia, and probably anywhere. 10 of fireextreme days, how they measure the fire increased in recent decades across many regions of australia, especially in southern and eastern australia. Mark she adds it has been the second warmest january to october on record for australia as a whole. She notes th
The feds Robert Kaplan says hes not sure the u. S. Economy can avoid a severe downturn. Tim cook defends apples decision to remove an app that tracks hong kong police. He says it was being used maliciously. Shery lets get you started with a quick check of the markets. We see u. S. Futures gaining. 2 after President Trump said u. S. China trade talks were going very well. That optimism translated into the regular session and we saw the s p 500 game. 6 percent. As we finally had the first day of those twoday negotiations kickoff after we saw a lot of conflicting reports on if that would happen. We had banks and automakers leading the gains on the s p 500. The Semiconductor Index also gaining about 1 for a second consecutive session. The nasdaq also rose. 6 . We had a weaker than expected u. S. Cpi print, which did little to discourage market excitations that we could perhaps be seeing more fed easing. Energy was the best performer as well in todays session as we had wti rebounds from a t
What a fist half it was. Well have more on that in just a moment, but we begin tonight with that meeting that investors have been all waiting for, President Trump ane c president xi are in japan at the g20 summit ready to discuss trade. Analysts say that this discsion could mark aurning point for the market which has been bouncing around for months now onll any and headlines of progress and stalemates between the w two largest economies. Kayla towshe reports from osaka, japan. Reporter white house officials cant say with xacertaintyly what will transpire during President Trump and president xis 90minute meeting, but a Senior Administration off tells me the working assumption is that it will result in an agreement to deescalateon tensi and resume talks for a unspecified amount of time, that is unless president xi refuses to revisit e terms beijing balked at last month. Since then tensions haveig ened but theres still an opportunity according to the negotiator. I think president rump nee