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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

-1.38%

Communication Services XLC

-2.18%

Consumer Discretionary XLY

-2.54%

Consumer Staples XLP

-0.81%

Energy XLE

-1.28%

Financials XLF

-1.21%

Health Care XLV

-0.21%

Industrials XLI

-1.77%

Materials XLB

-1.83%

Real Estate XLRE

-1.56%

Technology XLK

-2.18%

Utilities XLU

-0.78%

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

Market Breadth

NYSE

NASDAQ

Advancing

701

872

Declining

2,627

3,701

52 Week High

88

78

52 Week Low

193

714

Up Volume

468.5M

1.02B

Down Volume

1.96M

2.14B

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.


Comments
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 threeis no doubt and I think the hype of him going against the administrationonce nominatedare 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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