The KUIK Morning Market Report for Thursday, December 8:
Stocks opened with little change
Index
Direction
Change
Units
Time
Dow
Up
1
points
19,555
10:01 AM
S&P500
Down
-0.1%
percent
2,240
Nasdaq Composite
Unchanged
0.0%
percent
5,394
30 Year Treasury
Up
7
Basis Points
3.10%
Annual Yield
U.S. stock-index futures point to a continuation of a record-setting trend after the European Central Bank held its key rates steady and said it would taper its asset-purchase plan beginning in April, while leaving the door open for an extension of its economic stimulus program “if necessary.” The central bank said it would taper the program to buying €60 billion in bonds each month from €80 billion until the end of 2017. The ECB’s targets inflation of near 2%.
In economic news: A report on U.S. weekly unemployment showed that jobless claims dropped by 10,000 to 258,000, matching forecasts and extending a streak of claims below 300,000. The report continues a trend that points to a healthier labor market.
The bond market is clearly pricing in the idea that infrastructure spending, tax cuts, rising deficits, immigration restrictions and protectionist policies are here to stay. The selloff in the bond market, resulting in surging yields and rates may be evidence that inflation is coming.
Serving the West Side first, I am Mike Elerath of BR Capital for 1360 KUIK.
