Barrel. Jon it is interesting to see the mood move in crude. You see cautiousness in stocks, even energy, because of the new Economic Data in the u. S. Digesting it stays higher for longer. The story suggesting candace staying higher as well because we saw canadas central Bank Hold Rates Steady at 5 . This decision was expected but is only the third time in 13 meetings that the bank has hit the pause button. Partly because we saw the economy contract in the second quarter. The bank of canada was not expecting that would spoke of excess demand in the economy starting to ease. In some messaging, there is a hawkish tilt given the inflation fight is not over. I want to bring in clear from the rbc Economics Team to get some reaction. Great to have you with us. What did you make of the fact that on the one hand, they stay steady on the race but do send a hawkish message to the market. Does that surprise you . Claire not really. I start with the decision itself with the bank of canada decidin
Downright unnerving. Were now looking at the other side of what the feds been doing to stamp out inflation, and its a big reason why the dow lost 199 points. The s p shed and the nasdaq 1. 06 . Were going have to learn with not a collapse in commerce, but definitely a slowdown. Along with the decline in profitability that always comes at this particular point in the business cycle. Each day we see more of these cracks. Extremely disappointing numbers from southwest airlines, luv. But there was no love. The airlines margins are being pressured by higher gasoline prices. Its not 250 to 260. Its budget is 270 to 280 ewhich is a huge difference. Southwests revenue per available seat mile, is down rather dramatically. Were looking at a 5 to 7 decline when the company said it would be down just 3 to 7 . That is jarring. It looks like business is finally getting hurt by the sudden rise in oil. Its up in a straight line. And you cant ignore the fact that southwest revenue per available seat mi
Decline as strength and the Services Industry adds to the higher for longer rates narrative. Bets on a november fed hike rising to 60 . Apple citing the most and a month saying some Chinese Government agencies are banning the use of iphones. Japans trouble outlook from the ana ceo who says demand from china is soaring. A quick check on wall street, not the best of openings to a month ever. Three down sessions, it looks like as futures open we might be pointed to a fourthdown session. The s p 500 down. 7 , big tech leading the time for the most part. Apple with their drop after we had sourced the idea that china would be banning iphones from the workplace. We had treasuries falling as well. That was to do with the Services Data which was really strong, except for prices paid being strong. That adds to inflation. Perhaps in place and will be stickier, there will be another fed rate hike in november perhaps. We had to fed speakers rwo fed speakers, they both said there may be another rate
Downside. A big piece of the story you are seeing on your screen is the oil market. Were watching was happening in oil, it is pulling back as russia and saudi arabia extend their supply cuts until the end of the year. Yields on the twoyear and the ten year also climbing for the second day and a row. What you need to know, that is coming up. Taking a look at european markets right now, as you can see we have a few things going on in the european markets. They are on the reds, cac 40 is down, the taxes lower, not to each overnight. A mixed bag chinese real estate giant evergrande stock jumping 70 after developer Country Gardens managed to avoid default over there. As you can see a mixed story but the shanghai are actually in the green. Here at home democrats are voicing concerns about President Bidens electability as he faces criticism on the economy and worries about his age. New accusations of playing politics between ron desantis and Vivek Ramaswamy as voters watch the race for the go
Palestine 7 months later. Johnson leading a congressional field hearing into what happened there plus markets in a slump with oil, inflation, global uncertainty, all that and more rattling stocks, telling you what is going on with your money. The Biden Administration floating the idea of using Atlantic City International Airport in new jersey to house migrants. The mayor of where that airport is located is not on board. We will talk to her life coming up. I am david asman in for neil cavuto and you are watching coasttocoast. Our top story, money dump at the pump. Us gas prices soaring to the highest seasonal level in a decade, second highest level while cuts are driving global diesel prices higher. Right into the is this with chuck devore and Senior Analyst phil flynn. Good to see you. The price of regular is up 0. 07 in august, the price of diesel was up 0. 42 in august. Diesel expects the price of everything. Wise diesel up so much . Combination of factors. The main reason is lack of