Major averages fell yesterday on mixed volume while the Federal Reserve released minutes from its Oct 28-29 meeting. Investors were looking for dissent in keeping the language "considerable time" in the text which would have signaled a rate hike sooner than later. Investors were also looking for greater concern on the part of Fed members about a persistently low inflation rate. Instead, investors got nothing definitive which explained the non-committal move in the markets after the minutes were released at 2pm EST.
European stocks are trading lower after a batch of weak economic indicators from Europe and China, with manufacturing in Germany and factory activity China both coming in below expectations. The U.S. will report today on manufacturing, consumer prices and existing-home sales. Weak economic activity in the U.S. is seen as a reason for keeping rates low for a "considerable time" which is QE-bullish for markets. U.S. futures are currently down around -0.4% at the time of this writing.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.