Morning Commentary
By Charles Payne, CEO & Principal Analyst
10/13/2023 9:48 AM
Yesterday, the market was experiencing a very impressive reversal after opening lower on a slightly hotter-than-expected Consumer Price Index (CPI) report when the 30-year bond auction derailed everything. I’m calling it the ‘Tumbleweed Auction.’ When it began, the 30-year yield was 4.68. When it was over, the yield was 4.86.
No Buyers
The Federal Reserve wasn’t a buyer, and they weren’t alone, as it was very crowded on the sidelines. the Treasury only raised $20.0 billion—more than 22.0% at the highest bid.
Dealers ate 18.17%, very similar to what happened with the ten-year auction the day before. Usually, dealers take in around 11.0%.
The auction tail (the gap between the lowest and highest bid) moved to its narrowest gap since November 2021.
Thus, $47.0 billion was tendered, and less than $20.0 billion was accepted.
The Stock Market
The S&P 500 tried to come back after being blindsided by the miserable bond auction. That attempt was too little, too late, and failed. Technology (XLK) and Energy (XLE) eked out gains.
The S&P 500 broke an impressive move going back to last Friday. The failure in the shadow of the 200-day moving average is not a good sign.
Key Charts
The Russell 2000 was slammed! It was a horrific move lower, extending an ugly drawdown.
The equal weight S&P was also hit hard. Forget all that talk about rotation for now.
Banks at the Plate
Banks kick off earnings season today. Key trends to note:
- Discount window -$200,000,000 to $2.6 billion
- Bank Term Funding Program (BTFP) +$1.2 billion to $108.9 billion
- Federal Deposit Insurance Corp (FDIC) loans -$5.5 billion to $58.3 billion
Charge-offs are increasing.
Delinquencies are surging.
Today’s Session
Bank results are in, and for the most part, they beat and offer upbeat guidance and observations. Loan loss provisions were not as much as expected, and guidance was cautiously optimistic.
|
Bank Financial Results |
Revenue |
Earnings |
|
C |
Beat |
B $0.41 |
|
JPM |
Beat |
B $1.21 |
|
WFC |
Beat |
B $0.23 |
|
PNC |
Missed |
B $0.49 |
|
BLK |
In-Line |
B $2.71 |
Stocks are edging higher, and the ten-year bond yield is pulling back.
This could be a positive session / turning point.
| Tweet |
Log In To Add Your Comment
| 9/18/2025 1:23 PM | Rate Cut Rally |
| 9/18/2025 9:48 AM | Risk Management Cut |
| 9/17/2025 1:33 PM | Fed on Deck |
| 9/17/2025 9:43 AM | Champing at the Bit |
| 9/16/2025 1:33 PM | All Eyes on the FOMC Meeting |
| 9/16/2025 10:05 AM | Growth Leads the Way |
| 9/15/2025 1:36 PM | Solid Rally |
| 9/15/2025 9:50 AM | It's Still Tech As We Await the Fed |
| 9/12/2025 1:28 PM | Mega-Caps Move Higher |
| 9/12/2025 9:32 AM | JAILBREAK |
| 9/11/2025 1:39 PM | Rally Continues |
| 9/11/2025 10:08 AM | All AI All the Time |
| 9/10/2025 1:55 PM | The Oracle Effect |
| 9/10/2025 9:50 AM | PARTY IN WHOVILLE |
| 9/9/2025 1:50 PM | Sharp BLS Revision |
| 9/9/2025 9:48 AM | Tech & Large Cap Safety |
| 9/8/2025 1:29 PM | Technology Leads Again |
| 9/8/2025 9:34 AM | FOREBODING |
| 9/5/2025 1:29 PM | Jobs Data Digest |
| 9/5/2025 9:55 AM | JOBS DAY (BUCKLE UP) |
| 9/4/2025 1:07 PM | Stocks Rise and Yields Sink |
| 9/4/2025 9:45 AM | MOSTLY BLAND |
| 9/3/2025 1:48 PM | Big Tech Rebounds |
| 9/3/2025 9:41 AM | NOT AN EMOTIONAL RELEASE (YET) |
| 9/2/2025 1:37 PM | Gloomy Start |
| More commentary archives | |
|
Home |
Products & Services |
Education |
In The Media |
Help |
About Us |
Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.
|