The KUIK Morning Market Report for Tuesday, September 5:
Markets are down.
Index
Direction
Change
Units
Index
Time
Change
Dow Jones Industrial Average
Down
(105)
points
21,882
7:09 AM
S&P500
Down
-0.3%
percent
2,470
(6.32)
Nasdaq Composite
Down
-0.3%
percent
6,419
(16.49)
30 Year Treasury
Down
(4)
Basis Points
2.73
Annual Yield
Trading volume is low after the Labor Day Weekend. The standoff between North Korea and the U.S. and its allies escalated over the weekend after Pyongyang said it had successfully tested its largest-ever nuclear bomb. The isolated regime is said to be ready to launch a new intercontinental ballistic missile as soon as this Saturday when the country celebrates its founding day. U.S. Defense Secretary Jim Mattis warned North Korea that it would be met “with a massive military response” if it attacks the U.S., Japan or South Korea, while Nikki Haley, the U.S. ambassador to the United Nations, said at a UN Security Council emergency meeting that Kim Jong Un was “begging for war.”
Federal Reserve Governor Lael Brainard pointed out that inflation has not hit the Fed’s 2% annual target over the past five years. Recent soft inflation may be due to depressed underlying inflation, Brainard said, in remarks to the Economic Club of New York. She said: “In that case, it would be prudent to raise the federal funds rate more gradually.” Brainard is a leading dove for the Fed. More hawkish members want to continue to raise rates despite low inflation, saying it is better to move sooner to ward off higher prices down the road.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
