Investors Nervous Ahead of Key Fed Decision

U.S. stock indexes were slightly in the red in early trading ahead of the Fed’s expected decision to speed up its tapering.

The Dow, S&P and Nasdaq were all slightly low as investors contemplated how companies might be effected by less stimulus. The overall market has been seen as a beneficiary of record low interest rates and monetary stimulus, and could therefore see a decline in valuations amid any significant changes in monetary policy.

Speaking on her podcast this week, Trish Regan slammed the administration and the Fed for their combination stimulus arguing that the use of the term “transitory inflation” was a joke. “We’ve been looking at prolonged, sustained inflation for some time. That is the fault of the presidency. It is the fault of bad economic policy. And, it’s the fault of the Federal Reserve which has continued its money printing,” she said.

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“It doesn’t really even make any sense, right? Why would you be printing so much money when unemployment is near an all-time low, four point two percent and the economy’s growing? I mean, we’ve had eight percent growth in the economy! …You do not you do not continue printing money by buying up bonds to the tune of $120 billion a month when you’re looking at such low unemployment and frankly, overall decent economic growth.”

She summed it up with, “What do you think is going to happen, guys? You’re gonna get inflation. All right. This is really bizarre that they have been so accommodative from a monetary standpoint.”  Listen to Trish’s Podcast Here.

With wholesale prices rising at the fastest rate, investors do expect the Fed will have no choice but to turn hawkish on inflation. That’s why they expect the Fed to reduce its $90 billion bond purchase program faster than expected. They also expect it to hint at rate hikes by mid-2022.

Level Chg. Chg. %
DOW  35,552 -39 0.11%
S&P 500  4,631 -2.65 0.06%
Nasdaq Comp 15,225 -12 -0.08%

U.S. Dollar and Treasuries

The yield on the 10-year Treasury rose slightly. The dollar remained stable against a basket of major currencies.

Price Chg. Chg. %
U.S. Dollar Index (DXY): 96.51 -0.06 -0.06%

 

Yield Change Previous close
U.S. 1 Year Treasury Bill 0.259% 0.014 0.245%
U.S. 5 Year Treasury Note 1.239% 0.005 1.234%
U.S. 10 Year Treasury Note 1.451% 0.005 1.446%

Stocks To Watch

Shares of Pfizer were up in early trading, as preliminary tests showed that its COVID pill could work against Omicron. On the other hand, shares of its competitor Moderna fell.

Shares of pharmaceutical company Eli Lilly were up after the company released its 2022 financial guidance. The company also raised its 2021 profit forecast to $8.15 – $8.20 per share.

Meme stocks AMC and GameStop were down in premarket trading after jumping 5.42% and 7.90% on Tuesday.

Symbol Company Name Price Chg. %
PFE Pfizer Inc. $56.58 1.87%
GME GameStop Corp. Cl A $146.46 -1.51%
AMC AMC Entertainment Holdings Inc. Cl A $24.08 -1.71%
LLY Eli Lilly & Co. $258.10 3.50%
MRNA Moderna Inc. $279.50 0.84%

 

Commodities To Watch

Oil dropped on rising global supply and fears over the Omicron variant. Gold dropped in premarket trading. 

Resource Price Chg. %
WTI Crude Oil $69.94 -1.12%
Brent Crude Oil $72.97 -0.99%
Natural Gas $3.87 3.15%
Gold $1,770.00 -0.13%
Silver $21.82 -0.47%
Copper $4.19 -1.50%

 

Crypto

The global crypto market cap is $2.18T, a 0.3% increase over the last day. Bitcoin’s dominance is currently 41.56%, an increase of 0.15% over the same period.

Currency Symbol Price Chg. % Market Cap.
Bitcoin BTC $47,951.43 +0.56% 906.36b
Etherium ETH $3,835.28 -0.01% 453.99b
Binance coin BNB $522.34 -0.88% 78.53b
Solana SOL $164.26 +2.76% 50.58b
Cardano ADA $ 1.241 -0.63% 38.63b

 

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