US stocks mixed in early trading. Feds Bostic/Empire index weighs on indices to start week

The major US stock indices Indices Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track Read this Term are opening with mixed results. The Dow Industrial Average is down for the 6th consecutive day. The S&P index is trading above and below unchanged. The NASDAQ NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term index is marginally higher.

Gains from premarket futures trading were eroded as Fed's Bostic does not see easing until later in 2024. Also the Empire manufacturing came in much weaker than expectations.

The snapshot of the market currently shows:

• Dow Industrial Average minus 74.01.0 or -0.22% at 33226.62
• S&P index -0.72 points or -0.02% at 4123.35
• NASDAQ index +22.90 points or 0.19% at 12307.64

Looking at the US debt market, a snapshot shows higher yields with the longer end leading the way to the upside:

• 2 year yield 4.04% unchanged
• 5 year yield 3.477% +2.6 basis points
• 10 year yield 3.505% +4.3 basis points
• 30 year yield 3.837%, +5.7 basis points

A summary of Fed chatter:

Goolsbee:

• The uncertainty surrounding credit conditions made the decision to raise rates in May a "close call."
• He expressed that determining the current state of the business cycle is challenging because the present cycle is unlike any previous ones.
• Goolsbee emphasized the importance of carefully managing inflation to avoid triggering a recession, given the unique nature of the current business cycle.
• He acknowledged the significant impact of banking stress, arguing that it needs to be taken into account and monitored closely.
• Goolsbee doesn't believe the current situation mirrors the 2008 crisis, but does see stress in some areas of the financial sector.
• He also noted that the full impact of recent rate hikes is still to be felt.
• He underscored the need for monitoring beyond normal data sets and being attuned to credit conditions.

Bostic:

• Fed's Bostic does not anticipate any rate cuts until well into 2024, emphasizing that more progress is needed.
• He acknowledges that inflation has been persistently high and does not expect it to decrease quickly.
• Bostic suggests there may be a bias towards higher rates, but significant progress has been made on inflation reduction.
• He anticipates that the more challenging part of inflation reduction, which is services inflation, will take time.
• Less than 50% of the items in the basket are showing increases of 5% or less, implying that inflation is still high.
• He believes that the math of inflation will work in the Fed's favor in the next several months and the economy will aid in inflation reduction.
• Bostic warns that unanchored inflation expectations can lead to behaviors that fuel inflation.
• He reveals that businesses and households have communicated their expectation that inflationary pressures will remain short-term.
• Bostic expected financial conditions to tighten when rates were raised and he believes that the appropriate policy now is to wait and see the effect on the economy.
• He suggests that banks feel confident about their capital positions and perceive their risk as low, leading them to be more conservative in their lending due to economic uncertainty.
• Despite the uncertainty, he does not see credit risk at present.
• Bostic perceives some risk of recession but does not consider it his base risk. He believes any potential recession would be neither long nor deep.
• If a recession occurs, he would likely not advocate for rate cuts.
• He believes that even with a slight increase in unemployment, the economy would remain strong.