US equity futures started this eventful week in the red as investors digested weaker than expected earnings from Caterpillar and lowered revenue outlook from Nvidia Inc. Treasuries started rallying and WTI oil fell below $53 a barrel. Last Friday, President Trump signed legislation to temporarily end the record long shutdown which will fund the government until Feb. 15th. However, he made it very clear that his agreement to end the shutdown was not a concession but to take care of people who were negatively affected by it, and he is willing to close the government again. Elsewhere, another round of trade talks between the US and China will take place from Wednesday through Thursday, and the two-day FOMC meeting will kick off tomorrow with the rate decision to be released on Wednesday, followed by a press conference with Fed Chair Powell. In addition to the week’s busy calendar, the corporate earnings season continues which will be highlighted by some of the biggest technology companies including Apple, Microsoft, Facebook, Tesla, Samsung, and Sony.
December Chicago Fed National Activity Index increased to 0.27 from a downwardly revised prior of 0.21. 46 of the 85 monthly indicators made positive contributions while 39 were negative. Dallas Fed Manufacturing Activity also increased to 1.00 from -5.10 prior vs. -2.70 consensus. The US Treasury is scheduled to auction off $41 Billion of 5-Year notes at 10:00 AM (PT) today.
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US equity futures started this eventful week in the red as investors digested weaker than expected earnings from Caterpillar and lowered revenue outlook from Nvidia Inc. Treasuries started rallying and WTI oil fell below $53 a barrel. Last Friday, President Trump signed legislation to temporarily end the record long shutdown which will fund the government until Feb. 15th. However, he made it very clear that his agreement to end the shutdown was not a concession but to take care of people who were negatively affected by it, and he is willing to close the government again. Elsewhere, another round of trade talks between the US and China will take place from Wednesday through Thursday, and the two-day FOMC meeting will kick off tomorrow with the rate decision to be released on Wednesday, followed by a press conference with Fed Chair Powell. In addition to the week’s busy calendar, the corporate earnings season continues which will be highlighted by some of the biggest technology companies including Apple, Microsoft, Facebook, Tesla, Samsung, and Sony.
December Chicago Fed National Activity Index increased to 0.27 from a downwardly revised prior of 0.21. 46 of the 85 monthly indicators made positive contributions while 39 were negative. Dallas Fed Manufacturing Activity also increased to 1.00 from -5.10 prior vs. -2.70 consensus. The US Treasury is scheduled to auction off $41 Billion of 5-Year notes at 10:00 AM (PT) today.
The curve has bull-flattened with UST 10-