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Afternoon Note

Market Volatility Continues

By Karina Hernandez, Senior Research Analyst
1/10/2022 1:42 PM

The major indices are bouncing off the lows of the session, but still under pressure as yields pare gains. Comments from former New York Fed President Bill Dudley is getting a lot of attention. He calls for a more hawkish FOMC, saying the Fed median forecast of inflation and the fed funds rate at 2.1% at the end of 2024 is “remarkable, even surreal.” In addition, Goldman Sachs economist predict the Fed will raise interest rates four times this year.

A return to “Merger Monday” is causing some stocks to move this afternoon with Enterprise Product Partners (EPD) buying Navitas Midstream and Take-Two (TTWO) taking over Zynga (ZNGA).

Technology continues to be the worst performer with shares of Facebook-parent Meta (FB) and chipmaker Nvidia (NVDA) falling more than 4% in early morning.

S&P 500 Index


Communication Services XLC


Consumer Discretionary XLY


Consumer Staples XLP


Energy XLE


Financials XLF


Health Care XLV


Industrials XLI


Materials XLB


Real Estate XLRE


Technology XLK


Utilities XLU


Breadth is ugly this afternoon, almost 1-3 on the NYSE and Nasdaq.

Market Breadth









52 Week High



52 Week Low



Up Volume



Down Volume



Markets volatility is not over yet. Tomorrow, we may see more price action in the 10-year yield as we get more color on what the Fed will do with its balance sheet in Powell’s renomination hearing at 10 am ET.

The only good news is this is the kind of carnage that creates great buying opportunities, but the bad news is panic selling begets panic selling and finding a bottom is tough.

It's clear to me that Jay's decisions are influenced by the executive branch's relationship to the corporate/media'a elite.

Patrick J Pedley on 1/10/2022 11:48:12 PM
Yes three is no doubt and I think the hype of him going against the administration once nominated are overblown.  There will be some Fed action but in the end they will not destroy the market to stop inflation.  CP

Charles Payne on 1/11/2022 2:56:09 AM

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