Not yet off the table. Meanwhile, the Treasury Curve flattens positivity. In fact, a real pullback, a real hesitation to dive into riskier euro stoxx 50 futures down about 7 10 of 1 . Ftse 100 futures right on their tail, down about 4 10 of 1 as well. This really signals this idea that, look, you do not want to be holding risk right now regardless of what part of the world youre on. Even if the United States often serves as a defensive bid today, it absolutely is not. You are seeing underperformance there. Nasdaq 100 futures down about 3 10 of 1 . That dynamic where youre seeing this kind of buy everything, sell everything mentality is absolutely afoot. And that is just the equity picture. I want to take you across. Asset here as well and talk about what is going on in the bond market, because there is a lot of movement there as well. When were talking simply about the changes going on in Monetary Policy pricing, two year yield at about 515, down about one basis point, the ten year yie
Interest rate is still 3. 6 . Nymex crude is coming back up it is so lower than it was in from tension in the middle east to 88. 33. 2020. There is some dispersion. Some people are struggling and when you get higher yields and a stronger dollar and more there is a big increase in consumer debt. Expensive crude oil, that is difficult for equities. Consumer debt and Credit Card Debt is actually only 1 12th the as a result, we see the selloff. In the middle east, there stock of mortgages. Remains very high tension. The household sector was performing well and there was an the World Leaders we have heard from our discussing this lately. Industrial sector boom. Sonali the Strong Economy comes pres. Biden i was saddened by with a backdrop of a lot of concerns about a steepening of the enormous loss of life the yield curve. Yesterday in the hospital in gaza. What is happening in your view . Based on the information, it jason it is a supply overhang appears a result of an erratic issue. Rocket
Jonathan krinsky, the path of least resistance, new highs. Are you on that page, too . Im on that page for now for sure after powells dovish comments, and i said this last week or the week before, after the market sold off a little bit, whats going on here . He put a flurry into the market and said no more rate increases. So if you were worried about that, thats off the table now what was jomo turned into fomo the joy of missing out as the market was declining has turned into the fear of missing out genl thats the narrative thats been constant for the last year, i think it is, and im the longest ive been in memory, actually, and its not because my memory is short, as youre about to say. Im glad you said it. Our viewers were thinking it im glad you confirmed it. I wanted to get that out there. I think moderation is in order here i actually think Inflation Numbers will be weaker tuesday and wednesday. Youre longer the market now than you can remember being . Yes, correct. Wow even in the
Win streak. If youre bullish on the economy, think were going to have a soft landing, small caps, nice boost today. Oil stabilizing. That is the big story today. Pick yours, josh brown. I think yields and i think the steepening in the bond market. I think you nailed it, judge. Yields down for every duration and in the belly of the curve is where you find them the most, the five year, the seven year both down 14 basis points to 4. 6 and 4. 65 respectively. Think about all the steepening weve seen in that inverted yield curve. The ten year, twoyear spread is now 30 basis points. Its the steepest weve seen the curve since october of 2022. One year ago. We have done a lot of work in the bond market. The tenyear three month is right now negative 85 basis points. That was almost negative 2 june of 2023. We have made a lot of progress and then you think about the stock side of the equation, you have an s p 500 trading at an 18 forward p e, small cap is 12. Southwest growth is still 20 forward
Im melissa lee, coming to you live from studio b at the nasdaq. On the desk tonight steve grasso, karen finerfinerm dan nathan, and guy adami. The dow was nearly 900 points higher. And look at treasuries. The bond market was closed yesterday, but yields on the tenyear dropped 16 basis points today, its biggest pullback since march. The moves coming amid some more dovish talk out of the fed today. Atlanta fed president Rafael Bostic adding to the chorus of officials like lorie logan and Phillip Jefferson suggesting the central bank may be done raising rates. Retail to builders to even the recently utilities all higher in todays trade. So, does this set the stage for a market rally into year end . Guy . I pause because i know the answer how do you know the answer . Because i know you, and im in your head. You are my head. If rates do come down, i mean, that does seem to, in recent, you know in recent past, lower rates are supportive of stocks. The question is, why are rates going lower .