Good morning and welcome to the show im dominic chu in today for Brian Sullivan lets get to the money and markets how theyre setting the day up solid gains. You can see here dow futures indicated higher by around 400 points a nice move there. The s p 500 up by 44 points and the nasdaq up by 150 turning now to whats happening with the bond market the yields moving higher currently at 69 basis points or 0. 69 . The two year note about. 16 and the 30 yearlong bond 1. 45 as well very strong from the starting position and you can see that now that translates to gains of less than 1. 8 on the ftse and typically its been one of the underperformers but you can see out in front today the u. K. Stock market not the 2 but also getting back some of the territory has been the german dax, 1. 5 you can see it suggesting a broadening out of this rally around coronavirus its up 6. 9 we had the resignation of the chairman and the ceo activists want job cuts. The unions had success against the Management
Well tenyear yield up about 4. 08 a lot of that gain in the yields in the long end happened with a stronger than expected payrolls report we also had recent indications of higher oil prices, maybe some inflation concerns so a lot of things in the mix, of course, with along with the fitch downgrade of the u. S. Federal debt that all brings us to our talk of the tape, where we ask is this a routine shakeout in stock after the powerful monday bimonth rally, or the sign of a much tougher tape ahead . Here with us is josh brown josh, we can write it any way w like sentiment was frosty, technicals were stretched something will come along to maybe create an air pocket on the other hand we had a lot of bears capitulating, the economy looks strong, everybody agree with his that, so we have the makings of a perfect evenic top. Where along the spectrum would you set yourself wow, as someone who is really good at explaining what just happened, i would say that this is not this is not very much muc
As to the longer rates narrative. Pets on a november fed hike rising to about 60 . Apple sliding the most in a month under reports of some government chinese agencies banning the use of iphones. We get japans travel outlook exclusively from the ana ceo who tells us that demand from china is soaring. If you look at u. S. Futures, it looks to be shaping up in a fourthdown day. The asia session could change that. We are early in the session. They are pointing lower. I just want to give that warning right now. It looks like we might see little bit more weight to bonds. Yields higher once again today after all of that data. Service is showing a lot of strength but also strengthen prices paid, which is perhaps the most troubling aspect of this whole thing. That adds to inflation. With oil prices assize they are at the moment, thats another troubling factor for those worried about inflation. Those include some fed Board Members and some fed president s including Susan Collins and jim bullard.
The statement by mccain joined s morning by a group that we all know well youve all been before this committee is i mention to the you a minute ago and i think most of the members of meet have seen in action in the field and investor crocker youve been diplomat in residence Wilson School and at Princeton University been all over the map. And in the last couple of decades, and a investor harry counselor, senator for strategic and budgetary assessment l by my account that is your 9th appearance before this committee does what sound right to you . Yeah. Investor at the university of Washington Institute for the policy i remember being with you in tucky, and other places and a, of course, ambassador Stewart Jones Vice President of the cohen group who your presence visited by i think every member here by both jordan and in iraq so it is great to have all of you here. Much of our nation attention has gone towards middle east in materials of military operations and thats appropriately so. Wev
Rishaad just looking at what is going on, you would think asian equities would be expensive relative to the u. S. They beat the s p 500. I want to bring up this chart. If anything, pricetobook ratio, and forward asiatoearnings spreads, stocks looking more attractive compared to u. S. Counterparts. Those spreads have widened to four. Nus there we have it. The rally could have legs. Fascinating its not just a more by you, but getting cheaper. Have not seen the political dysfunction in Washington Play out when it comes to the markets , and some jitters in the asian session. The last time we had a the lastt shutdown, three times, the s p 500 gained. Three, so wen day not just asian equities, but in the u. S. As well. Decisionsnk dominating the agenda, as well as u. S. Gdp. Sophie kamaruddin joining us now. Jitters. E do have asian stocks kicking off the session subdued. Japanese stocks are slipping as the boj policy decision is due tuesday. Lets check the open. We do have the taiex gaining