Interest rates fall into abyss

 

After the open… stocks are lower this morning after Wednesday's impressive rally. US employment data are not as strong as predicted, but the real problem is growing concern over continuing loosening of monetary policies by government's around the world, and the subsequent drop in bond yields. The US 10-year note has fallen below 2%, and the yields on German bonds of less than 10 years are now negative. The recognition that zero is not an absolute floor may, in itself, be worsening matters, as investors must ask with more urgency – exactly how low can yields go?

At present, stocks are down. The S&P 500 is down 0.18%, and the DJIA is down 0.15%.

Here are your Wednesday morning market metrics. The industries doing well today include Tobacco, Internet & Catalog Retail and Airlines. Industries showing weakness include Gas Utilities, Household Durables and Multi-Utilities.

The VIX is up 3.12% to 13.24 after closing yesterday at 12.84. The most active strikes are Intel (INTC), with 8,990 January 23 puts changing hands. The total put-call volume ratio is 1.02 (246,513/251,585). NYSE Adv/Dec 1,108/1,783. Nasdaq Adv/Dec 1,057/1,335. 

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can follow Julian’s daily hedged options trades and his unfolding market commentary via twitter: @JulianClose_MIC.

Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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