Wall Street Today | Fed Saw 'Significant' Inflation Risk That May Merit More Hikes
MACRO
Fed Saw ‘Significant' Inflation Risk That May Merit More Hikes
Federal Reserve officials at their last meeting largely remained concerned that inflation would fail to recede and suggested they may continue raising interest rates.
“Most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” according to minutes of the US central bank’s July 25-26 policy meeting published Wednesday in Washington.
Goldman Sachs Blames Zero-Day Options for Fueling S&P 500 Selloff
A flurry of trading in the contracts known as zero days to expiration, or 0DTE, was the backdrop to a jarring acceleration of the day’s decline, one in which the equity benchmark slid roughly 0.4% in 20 minutes, according to Goldman Sachs Group Inc.’s managing director Scott Rubner.
Summers Sees 10-Year Yields Averaging 4.75% in Coming Decade
Former US Treasury Secretary Lawrence Summers cautioned that the recent run-up in 10-year yields may have further to go, and that pressures are building to keep those benchmark rates much higher than experienced over the past two decades.
US Mortgage Rate Climbs to 7.16%, Matching Highest Since 2001
The US 30-year mortgage rate rose to 7.16% last week, matching the highest since 2001 and crimping both sales and refinancing activity.
The contract rate on a 30-year fixed mortgage rose 7 basis points to 7.16% in the week ended Aug. 11, according to Mortgage Bankers Association data out Wednesday. The gauge of home-purchase applications slipped for a fifth-straight week to the second-lowest level since 1995.
SECTORS
Oil Hits Three-Week Low as Equity Woes Overshadow Tight Supplies
Oil hit a three-week low as light summer trading left the commodity at the mercy of broader markets. A steep decline in US crude stockpiles and signs of tightening supplies in the Middle East and North Sea failed to lift prices.
COMPANY
Target Stock Rises After Retailer Reports Surprisingly Strong Earnings
Shares in the U.S. retailer leapt about 3% after second-quarter earnings per share handily beat consensus forecasts.
The stock's rise was despite $Target(TGT.US$ reporting that a shopper backlash over its Pride Month collection, and cautious consumers, reduced sales in the most recent quarter. Target expects sales to decline again this quarter, and has cut its full-year profit goal.
TJX Stock Gains on Earnings
$TJX Companies(TJX.US$ turned in better earnings and sales than expected and raised its financial forecasts for the fiscal year, putting the stock on track for a record high.
The off-price retailer’s second-quarter sales were $12.8 billion, ahead of expectations for $12.5 billion. Adjusted earnings per share were 85 cents, compared with the 77 cents consensus call among analysts tracked by FactSet.
JD.com Posts Earnings Beat
$JD.com(JD.US$ smashed earnings expectations but the e-commerce giant’s stock was tumbling on Wednesday.
JD.com reported per-share earnings of 5.39 Chinese yuan (74 cents) on revenue of 287.9 billion yuan ($39.5 billion) in the second quarter. Representing earnings and sales up 33% and 8% year-over-year, respectively, the results firmly outpaced expectations among analysts surveyed by FactSet of per-share profit at 4.95 yuan and revenue at $280 billion yuan.
Source: Bloomberg, Dow Jones, CNBC, Financial Times
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lightfoot : Let me tell you about inflation. The economy left alone will reconcile itself. The Federal Reserve have screwed this nation terribly so. Powell had no clue not a whimper. Shallow minded with tunnel vision. Reverse all the rste raises and go study Supply vs demand, High inventories will bring down prices. Boycotting is a consumer 's best defense. When suppliers realize consumers will refuse these prices the Index will correct itself. Now consumers are choking on inflated worthless dollar thanks to those idiots in the White House. They should study economics for dummies.
MoneyComesMoneyStays lightfoot: Rates are now currently more in line with historical numbers. People can now actually get interest on their savings.