The Dow Jones slipped 70 points shortly after falling more than 100 points, the first decline in 9 days for the Dow. The S&P 500 and Nasdaq pulled back 0.30% and 0.50%, respectively. The decline came amid fears that the attack in Saudi Arabia could slow down global economic growth. Oil prices soared after Saudi Arabia’s oil facilities were damaged in a coordinated attack, forcing the kingdom to cut its oil output in half. The attack on the facilities at the Abqaiq and Khurais oil fields, destroyed about 5.7 million barrels of daily crude production, which is about 50% of the kingdom’s oil output. Saudi Aramco, the national oil company, hopes to restore about 2 million barrels today. Oil prices tapered after the US announced it would release oil from the Strategic Petroleum Reserve to keep the markets “well-supplied” and ease pressure on the global economy. West Texas Intermediate crude oil advanced 10.20% to $60.46 a barrel. The yield on 10-year Treasuries sank 6 basis points to 1.84% and the yield on 2-Year Treasuries dipped 4 basis points to 1.76%. Today, the US Treasury will auction $45 billion and $42 billions in 3-month and 6-month bills, respectively.
Treasuriesrallied and investors looked for a safer commodity; Gold climbed 1.00% to $1,503.41 an ounce and Silver advanced 2.20% to $17.83 an ounce. The New York Fed’s Empire State Survey for September detailed a drop in manufacturing, from 4.8 to 2, as readings for new orders and shipments crumbled; US manufacturing has shown a growing weakness amid trade tensions with China. The measure of capital spending dropped the most in three years, to 4.6 from 23.2. The Institute for Supply Management’s purchasing manager index narrowed in August for the first time since 2016 as the benchmark for new orders dropped to a seven-year low. The report was released two days before The Federal Open Market Committee is scheduled to meet on Tuesday and Wednesday to discuss the possibility of lowering interest rates in response to “slowing economic growth and muted inflation”, in an attempt to protect the longest-ever US economic expansion; Chairman Jerome Powell will hold a post-decision press conference Wednesday.
This information is provided solely for informational use and is not intended as an advice for trading or investment purposes in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.
The Dow Jones slipped 70 points shortly after falling more than 100 points, the first decline in 9 days for the Dow. The S&P 500 and Nasdaq pulled back 0.30% and 0.50%, respectively. The decline came amid fears that the attack in Saudi Arabia could slow down global economic growth. Oil prices soared after Saudi Arabia’s oil facilities were damaged in a coordinated attack, forcing the kingdom to cut its oil output in half. The attack on the facilities at the Abqaiq and Khurais oil fields, destroyed about 5.7 million barrels of daily crude production, which is about 50% of the kingdom’s oil output. Saudi Aramco, the national oil company, hopes to restore about 2 million barrels today. Oil prices tapered after the US announced it would release oil from the Strategic Petroleum Reserve to keep the markets “well-supplied” and ease pressure on the global economy. West Texas Intermediate crude oil advanced 10.20% to $60.46 a barrel. The yield on 10-year Treasuries sank 6 basis points to 1.84% and the yield on 2-Year Treasuries dipped 4 basis points to 1.76%. Today, the US Treasury will auction $45 billion and $42 billions in 3-month and 6-month bills, respectively.
Treasuries rallied and investors looked for a safer commodity; Gold climbed 1.00% to $1,503.41 an ounce and Silver advanced 2.20% to $17.83 an ounce. The New York Fed’s Empire State Survey for September detailed a drop in manufacturing, from 4.8 to 2, as readings for new orders and shipments crumbled; US manufacturing has shown a growing weakness amid trade tensions with China. The measure of capital spending dropped the most in three years, to 4.6 from 23.2. The Institute for Supply Management’s purchasing manager index narrowed in August for the first time since 2016 as the benchmark for new orders dropped to a seven-year low. The report was released two days before The Federal Open Market Committee is scheduled to meet on Tuesday and Wednesday to discuss the possibility of lowering interest rates in response to “slowing economic growth and muted inflation”, in an attempt to protect the longest-ever US economic expansion; Chairman Jerome Powell will hold a post-decision press conference Wednesday.
The curve has bull-steepened with UST 10-Year yield down 2.63 bps.