Yesterday, but again we were talking about Massive Gains not just through the month of july but year to date as well well continue to keep an eye on this if youre watching treasury yields, this is where you would anticipate seeing moves if there were a downgrade if people were afraid of rushing into this. But it turns out u. S. Treasuries are still a safe haven and why the yields are still a bit lower. The 2year note trading at 4. 86 . Of course, all that related to what were seeing. Talk about the downgrade because it is our top story. Theyre citing what theyre calling an erosion of governance Emily Wilkins joining us now good morning to you. Good morning, andrew. Yes, shocking news yesterday at least for some of those in the Biden Administration seeing that downgrade in the u. S. Credit ratings from a aaa to a aplus this is only the second time the u. S. Credit rating has been downgraded like this treasury secretary janet yellen is quickly depending the Biden Administration she says
Isnt lost. It may be found. What do we think about where we might go . I think were still stuck in a range, were battling with the emotions of feeling better, seeing corporate earnings do better than we expect. Were seeing goldman say things like, hey, were decreasing the chance of a recession. Then were fighting the math on it. I dont see how the multiple on the s p gets above 20 times. With that you have a heavy cap on the market. Were stuck in this range and it might take time to get out of it. Investors are impatient. Theres so much we still need to digest. Were digesting 18 months of rate hikes, the fed reducing their balance sheet, the inflation reduction act, unemployment levels that are changing, inventories. Everything is distorted. We want it to happen all at once, get back to high growth but its important to do that. I think were stuck. Joe, are we stuck . I think it rallied from the 4 low. Youve built in a cushion. I think jenny is on to something. Weve priced in the fact t
And a. I. Strategy. Ceo andy jassy saying surprise from the generative a. I. Business. Inflation seems to be cooling. The pace of inflation came in a 3. 7 for the month of september. Were keeping an eye on the auto industry, mean white the uaw reportedly delivering a new offer to gm. Amazon is up nicely after reporting quarterly results. Ceo andy jassy saying hes been surprised by the companys growth in a. I. You look at the very substantial, gigantic, new generative a. I. Opportunity, which i believe will be tens of billions of revenue for aws in the next several years, i think we have a unique and brought approach thats really resonating with customers. You can see it, you know, with the customers i mentioned that are using us, starting with the workloads for generative a. I i can see it also, the growth rate for us is very fast of course, if they can get ahold of the chips they need, give me your take on the quarter. Okay. So you go through what went wrong with alphabet which was di
200day joining the s p and the dow. Well keep an eye on the markets and see what all this means, of course, for the Global Economy rates a big picture with a lot of macro data. On the markets, growth versus value. Growth has outperformed value in the last decade. Is there a case to be made at these levels joining us at post 9, Research Affiliate and founder of the board, rob arnaut. 130 billion is managed globally using its strategies what did the gdp and core print say to you today basically, none of it comes as a surprise. Were in an economy that i think is going to be showing signs of slowing. We have theres no such thing as a recession without a Housing Slowdown theres no such thing as a Housing Slowdown without a recession. Theyre joined at the hip. Right now we have a Housing Market thats severely restrained if you have a home and mortgage at 2. 5 , youre not going to sell unless you have to. If you want to buy and youre going to have to borrow at 7. 5 , youre probably not going
Makes the company so far resilient to higher rates. Dom chu has the numbers. To your point, kelly, if you look at the s p 500, thats down roughly 54 to 5, does represent session lows at this point even at the highs of the day, only down about three points so it has been negative. Specifically in tech and communication, thats been driving the down side. 245 points on the down side. For those listening on sirius xm, its 4133 at those leaves do you 2 , 12,555 for the nasdaq each of these major indices is below the longer trend 200day moving average. Another place to keep a close eye on, look at the semiconductor etf again, the chip makers is below the 200day moving average, so something to keep an eye on as well for some of the stocks driving the action, of course, earnings from alphabet, even microsoft sharply up day yet is down about 3. 5 today. And meta platforms, weaker on the heels, and all eyes on amazon this afternoon, given what we have seen, with earns that could be something to