Friday July 15, 2022: $150.17 +$1.70 +1.15%
Jul 15, 2022 1:15:29 GMT -8
CdnPhoto and 4aapl like this
Post by Dave on Jul 15, 2022 1:15:29 GMT -8
Good morning and thank goodness it’s Friday. And, the pre-market is green at +0.24% at this moment. So how will we end this trading week?
Dow Jones Futures: Market Rallies Back As Fed Hawks Say This; Tesla Rival Soars
Dow Jones Futures: Market Rallies Back As Fed Hawks Say This; Tesla Rival Soars
Fed Hawks Show A Little Dove
Fed Board of Governors member Christopher Waller and St. Louis Fed President James Bullard, two of the Fed policymakers most vocal about front-loading rate hikes, lowered expectations Thursday of a 100-basis-point rate hike later this month. The prospect of a full-point rate increase soared Wednesday following the hot June CPI report and Atlanta Fed President Raphael Bostic's statement that "everything is in play."
Waller said Thursday that 75 basis points is still his "base case" for a rate hike at the July 26-27 meeting, say "markets may have got a little ahead of itself" on 100 basis points, though he didn't rule out a "larger" move.
Bullard told Nikkei that he favors a 75-basis-point move, which he said would bring the fed funds rate to a "neutral" level. He said further tightening will be needed, but "we can assess" as the year continues.
Before the open, the producer price index unexpectedly accelerated in June to a scorching 11.3% gain vs. a year earlier. But core inflation slowed more than expected. Notably, core PPI rose 0.4% vs. the previous month, cooling from May's 0.7% gain. That was in contrast to core CPI, which is showing accelerating month-to-month gains.
Markets are now pricing in a 57% chance that the Fed will raise rates by 75 basis points. On Wednesday, the odds of a full-point hike exploded to 80% from about 8% the day before.
Dow Jones Futures Today
Dow Jones futures climbed 0.3% vs. fair value. S&P 500 futures advanced 0.35%. Nasdaq 100 futures rose 0.5%.
China economic data was mixed overnight. Second-quarter GDP rose 0.4% vs. a year earlier, managing to grow despite Covid lockdowns during Q2 but missing views for 1%. June industrial production grew 3.9% vs. a year before, just below the consensus for 4.1%. Retail sales, though, climbed 3.1%, defying views for flat results.
China eked out GDP growth of 0.4% in the second quarter from a year ago, missing expectations as the economy struggled to shake off the impact of Covid controls.
On Friday morning, investors will get U.S. retail sales and industrial production data for June, along with the Empire manufacturing index for July.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Fed Board of Governors member Christopher Waller and St. Louis Fed President James Bullard, two of the Fed policymakers most vocal about front-loading rate hikes, lowered expectations Thursday of a 100-basis-point rate hike later this month. The prospect of a full-point rate increase soared Wednesday following the hot June CPI report and Atlanta Fed President Raphael Bostic's statement that "everything is in play."
Waller said Thursday that 75 basis points is still his "base case" for a rate hike at the July 26-27 meeting, say "markets may have got a little ahead of itself" on 100 basis points, though he didn't rule out a "larger" move.
Bullard told Nikkei that he favors a 75-basis-point move, which he said would bring the fed funds rate to a "neutral" level. He said further tightening will be needed, but "we can assess" as the year continues.
Before the open, the producer price index unexpectedly accelerated in June to a scorching 11.3% gain vs. a year earlier. But core inflation slowed more than expected. Notably, core PPI rose 0.4% vs. the previous month, cooling from May's 0.7% gain. That was in contrast to core CPI, which is showing accelerating month-to-month gains.
Markets are now pricing in a 57% chance that the Fed will raise rates by 75 basis points. On Wednesday, the odds of a full-point hike exploded to 80% from about 8% the day before.
Dow Jones Futures Today
Dow Jones futures climbed 0.3% vs. fair value. S&P 500 futures advanced 0.35%. Nasdaq 100 futures rose 0.5%.
China economic data was mixed overnight. Second-quarter GDP rose 0.4% vs. a year earlier, managing to grow despite Covid lockdowns during Q2 but missing views for 1%. June industrial production grew 3.9% vs. a year before, just below the consensus for 4.1%. Retail sales, though, climbed 3.1%, defying views for flat results.
China eked out GDP growth of 0.4% in the second quarter from a year ago, missing expectations as the economy struggled to shake off the impact of Covid controls.
On Friday morning, investors will get U.S. retail sales and industrial production data for June, along with the Empire manufacturing index for July.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.