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I'm sure INTC's news last night also spooked the markets. It was far worse than expected, and their corrective actions announced are pretty dramatic ... it's all related, and probably only adds to the spooked sentiment right now. Lowered job growth announced today just added fuel to the fire, too.
Powell wants to see more data that inflation is trending downward. September is the earliest for any rate cut but there is no guarantee.
This morning labor market data is not encouraging. In July, U.S. hiring slows to 114,000 job while unemployment rose to 4.3% ( it has been trending upward in the last 3 months). Former economist Claudia Sahm mentioned that we could be already been in recession.
Bloomberg reporting provides further insights on earnings. Amazon is down 9%. Intel’s reporting is alarming - cutting dividend, lowering guidance, and laying off 15,000.
We have been moving from stocks to bonds this year. Also increasing the bond duration in our fixed income portion to more intermediate term.
Nikkei 225 was down -12.40% overnight. It's now down -25.85% from mid-July high. Global markets are also selling off but not to that extent. VIX has spiked to 52.
Gold’s interesting. GDX was down 5 or 6% in early morning.. Must be lot of fun if you got 30, 40% or more in the stuff. Miners down lot more than the metal today. Yeah. Good old Japan. I remember something like that many moons ago.
Comments
Will some of the FOMC (Federal Reserve Open Mouth Committee) members saddle-up and ride to the rescue today?
I'm sure INTC's news last night also spooked the markets. It was far worse than expected, and their corrective actions announced are pretty dramatic ... it's all related, and probably only adds to the spooked sentiment right now. Lowered job growth announced today just added fuel to the fire, too.
Buckle up, folks!
This morning labor market data is not encouraging. In July, U.S. hiring slows to 114,000 job while unemployment rose to 4.3% ( it has been trending upward in the last 3 months). Former economist Claudia Sahm mentioned that we could be already been in recession.
Bloomberg reporting provides further insights on earnings. Amazon is down 9%. Intel’s reporting is alarming - cutting dividend, lowering guidance, and laying off 15,000.
We have been moving from stocks to bonds this year. Also increasing the bond duration in our fixed income portion to more intermediate term.
CNBC https://www.cnbc.com/quotes/.VIX
Yahoo Finance https://finance.yahoo.com/quote/^VIX/
Cryptos https://www.cnbc.com/cryptocurrency/
(US futs this Tues premarket are up less than .5% so essentially treading water as of now.)