Morning Market Report 2/26/2018

The KUIK Morning Market Report for Monday, February 26:

Markets are up.

Index

Direction

Change

Units

Index

Time

Change

Dow Jones Industrial Average

Up

                    223

 points

          25,533

7:06 AM

S&P500

Up

0.6%

percent

           2,763

Nasdaq Composite

Up

0.6%

percent

           7,382

30 Year Treasury

Down

                       (3)

Basis Points

             3.13

Annual Yield

The Chicago Federal Reserve Bank’s index of national economic activity fell to positive 0.12 in January from a downwardly revised 0.14 in December, mostly due to factories slowing down. The index stayed in a narrow band recently. October’s 0.87 was the highest reading since 0.94 in December 2006.The index is a weighted average of 85 economic indicators, designed so that zero represents trend growth and a three-month average below negative 0.70 suggests a recession has begun. Forty of the 85 indicators were positive, while 47 fell and one was unchanged.

Goldman Sachs is looking at the potential of 4.5% on the 10-year treasury by 2019 and the damage it would do to stocks. Its base case is for 3.25% by the end of 2018 but Goldman isn’t counting out the possibility of tougher times for the market. “A rise in rates to 4.5% by year-end would cause a 20% to 25% decline in equity prices,” Goldman economist Daan Struyven says in a note on Bloomberg.

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www.marketwatch.com/story/chicago-fed-index-points-to-stalled-us-economic-growth-in-january-2018-02-26

www.marketwatch.com/story/stocks-could-plunge-another-25-if-this-happens-warns-goldman-sachs-2018-02-26

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