Markets unsettled after the US data today

The data today threw a monkey wrench into the markets that were encouraged yesterday from Jamie Dimons comments about the economy.

Today, the markets are unsettled after flash PMI, new home sales, and Richmond Fed manufacturing index all showed weaker than expected numbers.

The housing market data is a concern as it represents an asset sector that has given consumers confidence despite stock market declines. Now it seems that shoe has dropped with the sharp fall in a new home sales and increased month supply. Fast-break the other way.

Taking a lap around the markets shows:

US stocks down led by the NASDAQ index as earnings fears increases but expectations that the Fed may continue to tighten until rates reached neutral. Meanwhile inflation remains a problem with gas prices at record high levels (Ukraine war is not over), and food prices also higher (REPEAT: Ukraine war is not over). What does all that do to earnings Earnings A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price Read this Term?

• The NASDAQ is down over 400 points or -3.54% at 11128.40
• S&P index -89 points or -2.23% 3884.84
• Dow industrial average -137 points or -1.37% at 31442.73

US yields are lower on expectations the Fed may have to stop there tightenings earlier than expectations. What happens to the QT which has the Fed starting bond and MBS sales in June? Does the Fed tighten by 50 basis points 2 more times, hold their breathe, and hope for the best? The Fed desperately wanted to get rates higher and back to neutral, so that they could ease if things go the wrong way. They are still 100 to 150 basis points away from neutral. Meanwhile external forces from pandemic lockdowns in China to Russian invasion continues to influence supply of oil and other commodities and goods.

For today, the yields are lower:

• 2 year 2.493%, -13.2 basis points
• 10 year 2.734% -12.1 basis points
• 30 year 2.96%, -9.4 basis points

In other markets:

• Gold is up $11.61 or 0.63% $1864.50
• Silver is up $0.25 or 1.09% at $22.03
• WTI crude oil is unchanged at $110.29
• Bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term is back below 29,000 at $28,948.67 after trading up to $30,628

In the forex, the USD is mixed with declines centered in the JPY, EUR and CHF. The greenback is still higher vs. the GBP as they ponder rate moves given the increased cost of living adjustments. The CAD, AUD and NZD are also higher as risk off flows may be sending investors out of their currencies.

The JPY is the strongest of the majors. The CAD is the weakest.