Mixed Signals: A major coal company announced today that results would be worse than expected partially due to curtailed orders from Asia. This hurt the coal sector, but did not seem to have much of an effect on the overall market. On the other hand, existing home sales were up 7.7% MoM, beating the 1.7% expectation.
Existing Home Sales (Since 2000)
Record Low: The 10-Year Treasury note yield hit an all time low today of 1.8765%. How low can it go and how long can it stay so low?
Ten Year Treasury Yield (Since 1962)
Fed: The market reacted very negatively to the Fed announcement this afternoon. After the announcement, the markets dropped roughly three percent. The actions of the Fed, which you can read in detail from any news source, did not excite the markets. Additionally, they said there are “significant downside risks” to the economic outlook. This statement was probably a large contributor to the downside move in the market.
Market Today: The market was extremely weak today on the Fed announcement. Virtually every sector was down, particularly financials and those that are economically sensitive. As weak as the market was and generally feels, so far, the S&P 500 remains within the fragile short-term uptrend which began on August 9:
S&P 500 (One Year)
Have a good day!
Brent
