Posted on 01/30/2018 7:03:47 AM PST by Enlightened1
"We've had a unilateral move higher [in stocks] to start things off and people are realizing this is not sustainable," one strategist said.
The Dow and S&P 500 posted their worst session of the year on Monday.
Long-dated Treasury yields climbed further on Tuesday, with the U.S. 10-year Treasury yield trading near levels not seen since 2014, amid fears of higher
The S&P 500 pulled back 0.9 percent, with health care as the worst-performing sector. The Nasdaq composite fell 1 percent.
"We've had a unilateral move higher [in stocks] to start things off and people are realizing this is not sustainable," said Art Hogan, chief market strategist at B. Riley FBR. "You're also seeing some cracks in the global story with interest rates rising."
The Dow Jones industrial average fell 177 points on Monday, on the back of a rise in the 10-year treasury yield, raising concerns that higher interest rates could douse the bull market. The Dow, along with the S&P 500, posted its worst decline of the year on Monday.
Long-dated Treasury yields climbed further on Tuesday, with the U.S. 10-year Treasury yield trading near levels not seen since 2014, amid fears of higher inflation. The benchmark yield started the year trading around 2.4 percent.
Higher inflation could also lead central banks to tighten monetary policy faster than the market expects. Last week, Stifel strategist Barry Bannister predicted the Federal Reserve will cause a correction this quarter as it leads other central banks into tighter monetary policy.
The Fed kicked off its latest two-day monetary policy meeting on Tuesday. Market expectations for a rate hike are just 5.2 percent, according to the CME Group's FedWatch tool.
(Excerpt) Read more at cnbc.com ...
I don't have the time, can someone compare the Treasury Yield Curve in 2000 thru 2002 when you could get a 30 yr @ 4% or more, vs the Greenspan money pump post 9/11 and what Bernake/Yellin did with twisting the yield curve so you were lucky to get 2.75% for a 30 T-Bill?
How many seniors went into the "market" ( Dividends and Utilities ) because CD's and Treasuries sucked during the Obama years?
That was by design by team Obama IMHO, they didn't behave by norms and bought our own paper after the Germans downgraded us, as the "Porkulus" was absorbed into the annual budget by Boenher ( what a putz ).
For the long term, give me the dollar back, our AAA rating, and a normal yield curve.
Call me old school, Bond Ladders are cool, when you have normalcy. If that leaves the markets long term healthier, so be it....
OMG!
Vampires!
Werewolves!
Dim-o-crats!
Ugly loud wymmin!
Get the garlic and wooden stakes!
Ask Enlighterned1
It's often sector based. One of the things that's been happening in tech stocks this week is the pullback in the Apple stock price secondary to concerns over iPhone X sales and anticipation of their earnings report (due Thursday). It's just one stock, but is a major player in that sector. I'm not saying that Apple is specifically responsible for today's pullback, but if you have a few major stocks like Apple with a significant pullback, it can contribute to wider market shifts.
In my best barry sotoero voice (((markets go up & markets go down)))
FBI rat agent Peter Strzok’s wife Melissa Hodgman works in SEC
Since he was so tied up with Lisa maybe she had time to be involved in the Secret Society’s insurance policy
Melissa was promoted about the same time as Hillary’s exoneration was being drafted - based on Peter Strzok’s interview
Despite his torrid text affair with Lisa Page, Melissa and Peter both had time to visit the West Wing for very long sessions 2015
More ground for deep state investigation
We do not want to know
I thought it was related to the exit of McCabe and what seems likely to follow at the DOJ/FBI, and exposure of such high levels of corruption in the U.S. government that will flow over to financial markets.
Markets always rise and fall on perceptions of where economy will be 6-9 months down the road. What we are seeing now is a normal pullback after a runup in prices this month not seen in decades.
Q is someone who uses cryptic language to give us supposedly insider information on the battle between president Trump and the deep state. Some people believe he is for real and some don’t. You have to read his releases or watch a video of someone who is good at interpreting his message.
Q Anon: FReepers - you have been SO PATIENT with the ping storm! THANQ YOU!
I believe you are probably right.
However, I also believe we are ripe for the “big one”, for a LOT of reasons.
The markets rise and fall on earnings and the perceptions of earnings........period!
Any trader will tell you the crap that goes on in Washington does not influence the markets except in the most transient ways.
one day does not a market make. Everyone can relax.
Ebb and tide.
Hillary’s Fire and Fury at the expense of the people who did not support her?
Not that it really matters what I feel or think in regards to the stock market drop. However there are just a few too many uncertainties as pointed out in an article “Too many wars, too many enemies” By Pat Buchanan. Everyone has been rearming like crazy as if there was no tomorrow and there are powder kegs all over just waiting for someone to lose his cool and touch one off, and the proverbial “You know what hits the fan” as it has been building and accumulating for way too long.
I hope not, but it will not come as a surprise should it happen. And this uncertainty is not just internationally but domestically as well, so it is not surprising when it affects the stock market as well.
I think the market has idled for 8 years never really rising above the Obama factor so there is room for a big swing up. With wages rising, unemployment down and many corporate dollars returning & increased profits because of the tax bill I think the bull market has a long way to go.
I’m ready to be wrong.
If one is not ready to be wrong the market is not the place to be.
My God! Talk about hyperventilating!
In a healthy bull market you will see 3-5 percent pullbacks at various intervals. These are corrections and they are normal - and actually are very good things to keep the market from over-heating. When you have normal corrections it helps to stop bubbles from forming, and those crash markets and create recessions. The SOTU is meaningless, it’s a speech for chrissakes. No one will remember a damned thing about it next week. However, by then the market may begin recovering from the correction.
“300 points used to be a lot. When the market’s at 26,000 it’s lunch money.”
You eat very expensive lunches!
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