Accident shut down all northbound lanes overnight near gilroy. Five people were injured. One of them had to be air evacuated to a hospital at 10 15 at northbound 101 south of route 25. Several cars were serviced because the cause is still under investigation. Back to the weather. It is drying out this morning after a soggy and windy weekend across bay area, a lost you could be on clean up doubt. The storm will cause issues on streets and freeways throughout the bay area and in San Francisco, downed power lanes were a big problem on geary boulevard land on parked cars at third avenue and residents lost power. Police diverted traffic and ordered everyone to shelterinplace. We are waiting for an update at pg e on outages in the area. They said 6,300 customers were without power because of the weather. Most were reported in the east by. The utility called in center crews to work on the problems. In the south bay crews are busy cutting up a downed tree that stopped traffic on Stevens Canyon
Monetary policy to congress today, as part of the testimony. It had this worrisome nugget about stock values. Quote, forward price to earnings ratios for equities have increased to a level well above their median over the past three decades. Although equity valuations do not appear to be rich. Term premiums are more normal levels. That is what they said. Yellen was asked about the possibility of asset bubbles. She was a bit more sanguine. She did not contradict the report. I dont see signs of extreme threats to Financial Stability be at this time. This is something we monitor very closely. But it is something that can happen in a low Interest Rate environment. So i dont think that i see any broadbased evidence of those Financial Stability concerns, but it is something thats possible. Now, the fed noted in the Monetary Policy report why the Interest Rates would rise. A rise in rates thats not connected to good economic news, concerned about inflation or other reason why yields would ris
About whether investors should prepare for the worst in their portfolios. Joe, should they . Whats the message . No. In these plunging yields. No. The message shouldnt be theres a recession coming. Dont prepare as in 2008. Maybe a little bit of a 2007 moment. A look ahead what might be coming, but i think the proper thing now, no herd mentality in any particular asset class. A herd mentality in treasuries . No . Into utilities, but kind of warranted both on a fundamental and technical standpoint now. Make a compelling argument across the asset class chain for ownership of multiple things. One, own reits now. Take a look in the Investment Grade and high yields bond market. Opportunities there, especially on the financial side, and coming back to pure equity, scott, Consumer Staples are performing very well. Also seeing a lot of m a activity, whether jm smucker, mjm or something pete and i talked about. A simple u. S. Thing, oriented towards pizza. Dominoes. Pete, wonder if its time to b
To that vote. They have turn into small losses for the industrials. Down ten points. Nasdaq holding ton a very slim gain of about 4 at 4847 and the nasdaq is higher by 1. 6 . Lets kick it off with the first of those bs and that is the brexit vote countdown. We are just 12 hours, 59 minutes, 11 seconds away from the vote opening up in the uk. The polls do seem to show rather even split for stay or go. Perhaps the market and the wisdom of crowds is selling more of a stay story. The uk stock market having a great run lately. We pointed it out yesterday. Were up again today. Four days in a row of gains for the uk. The banks doing especially well. Barclays, for example, up 10 over the past week. Some of the other ones, lloyd banking group, prudential have also done very well. Lets look at the british pound. Its been on fire lately. In fact, a few days ago the pound had one of the best days in a decade. As you might imagine, were going to have lots more coverage of this brexit vote you might
Green either. Looking to open down. Overnight in asia youre looking at a bit of a green picture there. The nikkei and shanghai all in the green and up. Lets try over to europe and tell you whats been going on over there while youve been sleeping. Lufthansa. Could use the business apparently. Flying over there. Yes. Theyre warning and terror related warning. It is the lets say the some very smart writer says the Airline Stocks are losing out. They dont seem to lose out. Pretty consistent. And finally, they all rely on this thing. Its called crude. Wti crowd at 45. 79 this morning. Lot of earnings to talk about. Intel shares are under pressure. Company reports better than expected earnings and revenue that was roughly in line with expectations. Weaker than expected revenue from the company data center. Chief Financial Officer stacey smith giving a positive outlook for the second half of the year. We have insight into what we think some of the big cloud customers are going to buy. We have