10-Year T-Note Jun '24 (ZNM24)

The S&P 500 Index ($SPX) (SPY) this morning is down -0.20%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.16%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.40%. 

US stock indexes this morning are mixed.  The broader market is under pressure after today’s report on the Apr ADP employment change rose more than expected, which signals strength in the US labor market that reinforces the case for the Fed to hold off on interest rate cuts.   Also, an unexpected increase in the Apr ISM prices paid sub-index to a 1-3/4 year high signals persistent price pressures that are hawkish for Fed policy.

The FOMC, later this afternoon, is expected to announce no change in the 5.25%-5.50% fed funds target range for a sixth straight meeting.  However, markets are concerned that the FOMC and Fed Chair Powell will signal that the Fed will keep interest rates higher for longer.   

Corporate earnings results today are mixed.  On the negative side, CVS Health Corp is down mo... Read more