Higher as inflation data fuel hopes for a soft landing for the u. S. Economy. The bank of japan holds and unscheduled bond buying operation. Manufacturing contracting for a fourth straight month in another that the economy is failing to find traction. Youll kashkari says the u. S. Inflation outlook is positive but warns higher Interest Rates could still see some job losses. Christine lagarde says the ecb could hike again even after a pause next time. Happy monday. The start of a new week. And the end of the month. August and september tend to be if you look at history some of the worst two months for the s p 500. Strategists are asking, is it time to brace for a selloff . U. S. Equity futures pointing to a lower opening. As for treasuries, the question that lingers from friday is whether japanese investors will rush home in pursuit of highyield out that the bank of japan has tweeted its program. The japanese are some of the biggest investors and buyers of u. S. Debt so will treasuries
Downright unnerving. Were now looking at the other side of what the feds been doing to stamp out inflation, and its a big reason why the dow lost 199 points. The s p shed and the nasdaq 1. 06 . Were going have to learn with not a collapse in commerce, but definitely a slowdown. Along with the decline in profitability that always comes at this particular point in the business cycle. Each day we see more of these cracks. Extremely disappointing numbers from southwest airlines, luv. But there was no love. The airlines margins are being pressured by higher gasoline prices. Its not 250 to 260. Its budget is 270 to 280 ewhich is a huge difference. Southwests revenue per available seat mile, is down rather dramatically. Were looking at a 5 to 7 decline when the company said it would be down just 3 to 7 . That is jarring. It looks like business is finally getting hurt by the sudden rise in oil. Its up in a straight line. And you cant ignore the fact that southwest revenue per available seat mi
Ticketmaster forced to face the mu music. Im melissa lee, coming to you live from studio b at the nasdaq on the desk tonight tim seymour, karen finerman, steve grasso and julie biel. The do s p 500 and nasdaq pulling back after hitting record levels in the session that even as nvidia soared more than 9 on the back of an Earnings Report that few could find fault with. So, why werent the big numbers from the third biggest stock in the u. S. Enough to boost the rest of the market maybe ironically, Even Stronger numbers on the economy a better than expected read on pmi sent probabilities of september rate cut from nearly 58 yesterday to even money right now. Are markets now all about the fed once again tim, what happened today i think the fed is the most important dynamic in the market, but i do think you have a case here where that pmi, that composite pmi, the services component, 54. 8, last number was around 51, were starting to see the services weaken a bit. This was a very solid number
This is an extension of the relationship they signed back in 2022, which happened just before russia launched its invasion of ukraine. This will be the 40th time xi and putin have met since xi jinping first came to power. So just awaiting the russian leaders arrival there. The talks will take place with the chinese president and we will have more on those pictures as soon as something actually happens. But putin is on his way to that welcome ceremony. In the meantime lets look at how markets are faring. A lot of green on the screen today. Avril this is the post u. S. Cpi everything rally, whether youre talking about stocks, bonds, currencies, commodities, all gaining ground amid those expectations that we will see fed rate cuts as soon as september. We are hearing some of the fed speakers not sounding terribly convinced. That is worth noting, one Economist Says the fixation on inflation out of the u. S. Seems to be prompting an overreaction to the u. S. Cpi print. Still we are seeing g
Heres another factor. The all important Big Tech Companies announced their Financial Performance in the next two days. Theres a few nerves here. Any disappointment would upset the whole a the cart. We should also say that the market is due for a setback after 15 month near straight up rally. Well thats money. Now politics. Tonight, the state of the union speech. The as the is cleared his schedule today to prepare hes likely to sell his growth plan and maybe reach out for a bipartisan immigration deal. And heres the news that is truly rocking the world of politics. The memo, spelling out reportedly deep state goings on before and after the election. We may get to see it. The fbi director read it and promptly got rids are of Andrew Mccabe fbi guy at the center of the memo. Money and politics, what a day. Varney company is about to begin. Have we got a big deal to report right off the bat . And it is moving the whole market. Amazon Berkshire Jpmorgan they are teaming up to create a new co