Fed Seen Lowering Interest Rates, Market Focused

Fed Seen Lowering Interest Rates, Market Focused

$DIA, $SPY, $QQQ, $RUTX, $VXX

FLASH: Larry Kudlow said Thursday on TV: “I think the Fed is moving toward rate cuts. That is my view. It is true in the open market, the funds rate has traded a bit high, but I think they are moving toward rate cuts.”

Note: Slowing global growth has not deterred investors from US stocks this year. The US economy is on solid footing. The latest economic data today showed durable goods orders increase 2.7% M-M in March Vs consensus +0.9%. Expectations that mega-cap companies will continue to post solid growth has helped them take back the leadership. The strong earnings reports from Facebook and Microsoft, both of which included double-digit revenue growth is reinforcing buying interest.

Fed Chairman Powell raised the federal funds rate 4X, by a Quarter point each, in Y 2018, which President Trump criticized for slowing down economic growth.

The Fed acknowledged in March that it may not raise rates at all in Y 2019.

US Treasuries finished slightly lower, pushing yields slightly higher. The 2-yr yield and the 10-yr yield increased 1 bpt to 2.31% and 2.53%, respectively. .DXY finished unchanged at 98.18. NYMEX WTI Crude Oil lost 1.0% to $65.17 bbl.

Thursday, the major US stock market indexes finished at: DJIA-134.97 at 26462.08, NAS Comp +16.67 at 8118.67, S&P 500 -1.08 at 2926.17

Volume: Trade on the NYSE came in at 793-M/shares exchanged

  • NAS Comp +22.4% YTD
  • Russell 2000 +16.8% YTD
  • S&P 500 +16.7% YTD
  • DJIA +13.4% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish to Very Bullish in here.

Stay tuned…

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