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Major market averages opened lower Monday morning as investors geared up for the start of a holiday-shortened week.
In its early days, the S&P 500 (SP500) -0.2%,Dow(DJI) was -0.1%Nasdaq Composite (Comp:IND) was -0.5%.
“The most exciting event” Deutsche Bank’s Jim Reed said, “The monthly U.S. Personal Income and Expenditure Report includes important core PCE, which is important when the market is actually closed for the month and the first quarter ends.” “This will happen after the dust has cleared on the business performance front.” Bond and stock markets are closed on Fridays. ”
Since Friday is not a federal holiday, Federal Reserve Chairman Jay Powell is also scheduled to speak.
“At Chairman Powell’s press conference (last week), he said that the month-on-month change in core PCE could be ‘well below 30 bps’ by the end of the month,” Reid said. “If you just take his word for it, there will be downside risk.”
The rater was higher. The 10-year US Treasury yield (US10Y) rose 3 basis points to 4.23%. The two-year bond yield (US2Y) rose 2 basis points to 4.61%.
New home sales are scheduled for February soon. The consensus is to increase the annual interest rate to $675,000.
“Sales are expected to be broadly similar to 2018 and 2019 levels,” UBS’s Paul Donovan said. “This suggests a decline in interest rate sensitivity in the U.S. economy. Housing is traditionally an interest rate sensitive sector, but sales are still on par with times when real and nominal interest rates were much lower.”
