Friday, February 11, 2022Market indexes are waking up this morning to the idea that they perhaps overdid it yesterday. After a precipitous drop Thursday of between -1.5% (Dow) and -2% (Nasdaq) we’re seeing both the Dow and Nasdaq to +40 points, with the S&P 500 +7 points.
Fed officials are speaking up in response to yesterday’s announcement by St. Louis Fed President James Bullard that the next Fed move (mid-next month) will amount to a 50 basis-point interest rate hike. This caused a gasp among day-traders, who had presumably only price in a 25 basis-point hike.
Atlanta’s Raphael Bostic had recently appeared on CNBC to say he expected three or four rate hikes in 2022, presumably by 25 basis points, and he says this morning that his opinion has not changed. Richmond Fed President Barkin said he’d “have to be convinced” that a 50 basis-point-hike was necessary, while Fed President Mary Daly of San Francisco say a half-point hike in March was “not my preference.”
So market participants are getting a second chance at this rate-hike narrative, and they are cooling expectations. At worst, we’d see six rate increases of 50 basis points in 2022 — which would be deemed necessary for stifling inflation in a growing economy, which is ultimately still a good thing — which would bring us to an historically normal 3% interest rate. But it’s the jolt of suddenly tighter monetary policy after years of slack that had market participants worried. They’re breathing a sigh of relief this morning.
UnderArmour (UAA - Free Report) more than doubled earnings expectations this morning in its Q4 report: 14 cents per share knocked over the 6 cents expected in the Zacks consensus, and even beat last year’s quarterly earnings of 12 cents per share. Revenues of $1.53 billion in the quarter outpaced expectations by +4.5%. Yet shares are down -3.7% on words from the company that supply-chain issues remain going forward.
This weekend brings us Super Bowl Sunday. Even though the LA Rams are getting what amounts to a home game for the 56th contest (LVI) of NFL supremacy, the Cincinnati Bengals are the “home team” for Sunday’s game. At this time, LA is a 4-point favorite, led by veteran QB Matthew Stafford versus second-year helmsman QB Joe Burrow for the upstart Bengals. So far, $7.6 BILLION has been bet legally on this game through sports-betting sites.
Questions or comments about this article and/or its author? Click here>>
Friday, February 11, 2022
Market indexes are waking up this morning to the idea that they perhaps overdid it yesterday. After a precipitous drop Thursday of between -1.5% (Dow) and -2% (Nasdaq) we’re seeing both the Dow and Nasdaq to +40 points, with the S&P 500 +7 points.
Fed officials are speaking up in response to yesterday’s announcement by St. Louis Fed President James Bullard that the next Fed move (mid-next month) will amount to a 50 basis-point interest rate hike. This caused a gasp among day-traders, who had presumably only price in a 25 basis-point hike.
Atlanta’s Raphael Bostic had recently appeared on CNBC to say he expected three or four rate hikes in 2022, presumably by 25 basis points, and he says this morning that his opinion has not changed. Richmond Fed President Barkin said he’d “have to be convinced” that a 50 basis-point-hike was necessary, while Fed President Mary Daly of San Francisco say a half-point hike in March was “not my preference.”
So market participants are getting a second chance at this rate-hike narrative, and they are cooling expectations. At worst, we’d see six rate increases of 50 basis points in 2022 — which would be deemed necessary for stifling inflation in a growing economy, which is ultimately still a good thing — which would bring us to an historically normal 3% interest rate. But it’s the jolt of suddenly tighter monetary policy after years of slack that had market participants worried. They’re breathing a sigh of relief this morning.
UnderArmour (UAA - Free Report) more than doubled earnings expectations this morning in its Q4 report: 14 cents per share knocked over the 6 cents expected in the Zacks consensus, and even beat last year’s quarterly earnings of 12 cents per share. Revenues of $1.53 billion in the quarter outpaced expectations by +4.5%. Yet shares are down -3.7% on words from the company that supply-chain issues remain going forward.
This weekend brings us Super Bowl Sunday. Even though the LA Rams are getting what amounts to a home game for the 56th contest (LVI) of NFL supremacy, the Cincinnati Bengals are the “home team” for Sunday’s game. At this time, LA is a 4-point favorite, led by veteran QB Matthew Stafford versus second-year helmsman QB Joe Burrow for the upstart Bengals. So far, $7.6 BILLION has been bet legally on this game through sports-betting sites.
Questions or comments about this article and/or its author? Click here>>
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