Fed’s Collins: Absent new tariff and oil shocks, there is reason to believe inflation will ease Trump signs executive order renaming Lake Ontario to Lake America Fed’s Hammack: Next year inflation might ease to around 2.5% at best U.S.
Treasury sells $44 billion of 7 year note that a high yield of 4.512% Fed’s Hammack: It’s appropriate to put some restraint into rates Canada Q2 current account +$8.84B vs -$2.00B expected US July advance trade balance -118.8B vs -100.5B expected US initial jobless claims 203K vs 208K estimate US Wholesale inventories (advanced) for July 1.3% vs 0.2% estimate Fed’s Goolsbee: Biggest short run fear is that inflation isn’t under control Markets: Gold up $15 to $4607 US 10-year yields up 0.8 bps to 4.67% WTI crude oil up $1.68 to $83.93 S&P 500 up 0.7% Nasdaq up 1.5% The first reaction isn’t always the right one
Nvidia shares fell 4% after hours yesterday on earnings results but it steadily turned around, opened 6% higher and finished the day up 9.1%. It was joined by huge post-earnings gains from Salesforce up 23% and Crowdstrike up 21%. That paced gains in cybersecurity with Scotia calling it “the golden age” of cybersecurity.
Notably, S&P 500 breadth was negative despite the gains with travel names near the bottom of the charts, in part due to the rise in oil prices and signs that the US will try to starve out Iran’s economy. US data was mostly taken in stride as the market awaits Warsh’s Friday comments in Jackson Hole. Collins sounded like she was inching towards a rate hike while Hammack and Goolsbee didn’t sound ready to give up their hawkish stances.