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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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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