Downshift in the sentiment. The one thing that has not rallied in this everything rally are long dated bond prices. Investors have been positioning for continued divergence in that correlation. Yields are much higher than they were 48 hours ago. We have had some better data recently. Inflation data did see a reversal of some of the weakness. The fed has gotten dovish. It is not just the fed. The ecb remains on this dovish stance. Its a pretty positive environment for yields. We have seen an astronomical amount of money pouring in, and it is not in short dated treasuries, it is an longer dated. One of the most credit trades in the market is high quality duration. If you look at yield curves you , may be better off at the short end of the curve. If you get yields higher and equities higher, that is the pain trade. Jonathan joining me around the table here in new york to discuss is Mike Schumacher, kathy jones, and matthew hornbach. Kathy, lets begin with you. Maybe the biggest risk is th
The one thing that has not rallied in this everything rally are long dated bond prices. Investors have been positioning for continued divergence in that correlation. Yields are much higher than they were 48 hours ago. We have had some better data recently. Inflation data did see a reversal of some of the weakness. The fed has gotten dovish. It is not just the fed. The ecb remains on this dovish stance. Its a pretty positive environment for yields. We have seen an astronomical amount of money pouring in, and it is not in short dated treasuries, it is longer dated. One of the most credit trades in the market is high quality duration. If you look at yield curves, you may be better off at the short end of the curve. If you get yields higher and equities higher, that is the pain trade. Jonathan joining me around the table here in new york to discuss is Mike Schumacher from wells fargo, kathy jones from charles schwab, and Matthew Hornbach from morgan stanley. Kathy, lets begin with you. May
Wapner starts right now. Welcome, good to have you with us on this tuesday. Our Investment Committee here at the table. The ceo of arias Asset Management stocks are in the red, again a day before fed chair Jerome Powell delivers testimony before Congress Amid expectations that the central bank will cut Interest Rates later this month. So much, pete, it seems is riding on that what felt like, i dont know, almost like a foregone conclusion but then you have the jobs report and now there seems to be some question as to whether powell and Company Really have your back or not then you have larry kudlow talking about hes probably safe i mean, i dont know how much you buy. Or is that a negative that he gives excellent coaching in the sporting world everything is great everything is great now youre out of here i tell you what, that wouldnt be shocking to me. I dont know if that is shocking to anybody on the desk it wouldnt be shocking to me. I think that is the focus right now. Trump has gotte
Controversial extradition law and hong kongs chief executive has apologized for it. Not good enough for the people of hong kong, who turned out by the millions this weekend and who have returned to the streets today. They want the law dropped completely and the chief executive to resign. The pressure on xi remains. He is not leading a united country. Trouble back home. To the markets. We are going down a little at the opening bell, not much. Maybe ten points for the dow, up about 13 on the nasdaq. This is all about Interest Rates. The Federal Reserve will announce a decision at 2 00 p. M. Eastern wednesday afternoon. Will they cut . Dont know but theres a good chance they will. Thats what investors are waiting for. I want to know what happens to stocks if they do cut and what happens if they dont. Now heres those outage stories. You could call this a sign of the times. When computers go down, it is truly devastating. Over the weekend, target stores all shut down for a couple of hours.
The president criticizes the fed and europe as powell testifies this week. Deutsche bank announcing massive job cuts, exitinging Global Equities business, a highlyanticipated 8. 3 billion Restructuring Plan, but will it be the last. Another controversy brewing at starbucks well tell you what has the company apologizing this morning. Late last week, the s p was at within striking distance of 3k. Since the release of the stronger than expected june jobs number on friday, stocks have fallen on dampened hopes of a fed rate cut as the chairman prepares to testify on the hill later this week the president ramps up his criticism of the fed over the weekend. Take a listen. Despite everything, theyre not doing well and were doing great. Theyre not doing well at all, were doing great. Were taking money out and Interest Rates have gone up. If the fed didnt do what it did or even half, we would have the dow that would be as good as it is, it is doing good, but we would have a dow that would be any