The KUIK Morning Market Report for Monday, June 19:
Markets are up.
Index
Direction
Change
Units
Index
Time
Change
Dow Jones Industrial Average
Up
76
points
21,459
6:58 AM
S&P500
Up
0.5%
percent
2,445
11.84
Nasdaq Composite
Up
1.0%
percent
6,212
60.17
30 Year Treasury
Unchanged
–
Basis Points
2.78
Annual Yield
New York Fed President William Dudley said that the economy is in pretty good shape. In a roundtable discussion in Plattsburgh, New York, Dudley said the economic outlook was "pretty good." He said he wasn’t taking too much of a signal from low bond yields. He noted U.S. yields are relatively high compared with Japan and Europe and that the bond market is pricing in fewer rate hikes over the next two years than the four the Fed has signalled. Dudley said the Fed has to keep raising interest rates to avoid having to move so rapidly in the future that the tightening might cause a recession. The dollar and Treasury yields moved higher on his comments.
Marketwatch reports Senate Majority Leader Mitch McConnell want a Senate vote on Obamacare repeal-and-replace before the July 4 holiday. Some senators want to delay the vote but McConnell views that as delaying the inevitable. The toughest disagreements are over Medicaid funding and insurance market regulations. This week is crucial for the vote. Senators won’t vote without an analysis, the Congressional Budget Office, and that means they need to finalize negotiations this week.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
